Evolution Gaming have released their Interim Results for January – June 2016 and they look just as impressive as the previous quarters.
Second quarter of 2016 (Q2 2015)
Events during the second quarter of 2016
CEO Jens von Bahr’s comments
We are continuing to achieve strong growth and revenues increased by 50 percent compared with the same quarter last year. EBITDA amounted to EUR 10.6 million, corresponding to a margin of 39 percent. This is somewhat lower than in the preceding quarter since the substantial expansion is driving costs, mainly related directly to new tables and environments. During the second quarter we have seen an exceptional growth in new tables and environments, which I believe is strategically very positive. However, it puts pressure on the margin since a new table has a negative margin in the short term.
As in the first quarter, the expansion is mainly being driven by existing customers. One of the quarter’s most significant activities was the launch of several additional tables for Unibet at our studios in Riga and Malta. The project included a complete remodelling of the operator’s studio design, the launch of our new Live Lobby and a new user interface, a new dedicated team and new uniforms. Another major project was the relaunch of Grosvenor’s environment, which included moving from Riga to Malta. Customers taking the step of introducing their first dedicated environments during the quarter include LeoVegas. We have also signed contracts with new customers such as Danish Spilnu and GVC’s Casino Club brand.
This year’s EGR B2B Awards were held during the quarter and, for the seventh time of possible seven, Evolution was awarded the Live Casino Supplier of the Year. For each year that passes, the number of competitors increases, so it feels particularly rewarding to see this evidence that our efforts to continuously remain at the forefront are yielding results.
On the product side, two major launches took place in the quarter. First out was our new game Double Ball Roulette, which, just as the name suggests, is a variation on traditional roulette but with two balls. The game is issued through our partnership with Games Marketing and a number of customers have already launched it to their players. The second launch was of the much longed-for mobile version of Live Three Card Poker, which was launched by more than 50 customers in the quarter. Our entire product portfolio is now compatible with smartphones and tablets, which is a basic requirement for being able to provide a complete gaming experience. Mobile penetration for the quarter amounted to 40 percent.
Following the end of the quarter, we have entered into a very exciting agreement with The Ritz Club, one of the world’s most exclusive casinos, to whom we will deliver our convergence product Dual Play Roulette. This is a true milestone and something towards which we have worked for many years. This also confirms the trend of land-based casinos seeking online solutions to strengthen their relationships with their customers.
We expect continued high demand for our services throughout the remainder of the year. To maintain the right focus – to continue delivering growth with a good margin – the Board has therefore revised the schedule for Evolution’s list change, which is now expected to take place in the second quarter of 2017. Despite our size in terms of personnel, we are still an agile and entrepreneurial organisation, in which flexibility is important – at the moment, we believe that management must devote all of its efforts to delivering the best product.
Lastly, I would like to mention that we celebrated Evolution’s tenth anniversary during the quarter. I would like to thank everyone who has been involved and participated in our amazing journey to the position as the market-leading Live Casino provider. I now look forward to another ten successful years and more.
I have tried to be objective and consistent with all my live casino reviews. Hopefully, they will strike a chord with you, but I thought it might be helpful to explain the criteria I use to mark each of the casinos. Hopefully, the categories and explanations make sense.
Playability – What is the overall impression of the casino? Did I have a good time? are the dealers nice and chatty and is everything easy to understand? Does it have a good set of games and is there a comprehensive set of betting options? Are high stakes players taken care of?
Software – What is the software like to use and does it integrate well with the rest of the casino?. Are the images clear and is the video streaming fast? Have they taken more than the default shared tables? Is it available on mobile?
Payment Options – Does the casino have a good variety of payment options? Do they payout quickly and on time?
Security – How good is the reputation of the casino amongst other players? Do they hold a valid gaming license? Are they transparent about the security measures they have in place? Are they regularly audited? Do they publish this information?
Support – Do they have multiple methods for communication with me? Is support available 24×7? Do they have instant chat and are they quick to respond? Are they able to help me immediately? Do they have an online FAQ and self-help library? Are the support people knowledgeable about the product I’m playing?
Bonuses – Do they have bonuses?. How strict are the wagering requirements? Do they offer repeat bonuses?. Do they offer loyalty points and can they be redeemed for cash or playing credits?
After all that, would I play there regularly?