Evolution reported 50% earnings growth in the first quarter of 2022

gaming technology provider Evolution AB today released its first quarter interim report showing strong growth in all key indicators supported by its Live Casino segment.

Solid financial measures

For the first three months ended March 31, 2022, Evolution represented operating income of €326.8 million ($342.3 million)an augmentation of 38.6% at 235.8 million euros ($247.6 million), the business ended the first quarter of 2021 with. Growth was driven by growing demand for Live CasinoCEO of Evolution Martin Carlesund underline.

With segment momentum continuing in the first three months of 2022, Evolution represented a 44% increase despite the demanding comparable figures of Q1 2021 where the activity had seen exceptional growth.

“2022 has started very well and the entertainment and excitement that live games provide continues to attract new customers as well as existing customers to our games,” Carlesund emphasized.

First quarter EBITDA increased by 43.4% at €229.7 million ($241.2 million)compared to €160.1 million ($168.1 million) in the respective quarter of 2021, corresponding to an EBITDA margin of 70.3%against 67.9% in the first quarter of the previous year.

Commenting on the EBITDA result, Carlesund noted that it was within the company’s guidance for 2022, between 69% and 71%, a good result given the growth in overhead costs around the world.

“Looking forward, we see the EBITDA margin guidance of 69-71% holding.”

Martin Carlesund, CEO, Evolution

Evolution ended the first quarter of 2022 with a profit of €197.7 million ($207.6 million)at the top 49.8% of 132 million euros ($138.6 million) the activity generated in the first quarter of the previous year. Diluted per capital share, the profit amounts to €0.93 ($0.98)an augmentation of 50% to €0.62 ($0.65) in the first quarter of 2021.

Development of new products

Carlesund stressed the importance of having a network of development studios as Evolution puts together the final pieces to open its new studio in Yerevan and add more capacity to its network of 15 studios to have the ability to “effectively allocate resources” and “move resources from site to site as needed” without affecting the company’s ability to deliver. company.

Additionally, Evolution’s Go-Live studio in Madrid was also ready to launch operations, with the opening of the first tables alongside the publication of the interim report, Carlesund noted, while the total investment in the studios in 2022 is expected to increase.

Carlesund also paid attention to the “continuing strong demand for online casinos” worldwide. In North America, the company’s next studio is set to launch in Connecticut for further expansion, while in Europe growth is slowing primarily due to regulatory changes that have affected carriers.

He emphasized that creating new games is at the heart of everything at Evolution, mentioning all new titles released in the reported quarter, including dice game Bac Bo, Peek Baccarat, new RNG titles such as Narcos Mexico and Knight Rider, and local brands like Doggy Riches Megaways and Zillard King.

“With our 88 new games [in] In 2022, we showed what thousands and thousands of fantastic Evolution employees can achieve together,” concluded Carlesund.