Evolution operating revenues up by 49% in full-year 2019

Evolution Gaming released Wednesday its Year-end Report for January-December 2019. During full-year 2019, operating revenues increased by 49% to EUR 365.8 million, EBITDA climbed by 70% to EUR 182.9 million, corresponding to a margin of 50%. Profit for the period amounted to EUR 149.7 million (up from EUR 83.5M), and earnings per share before dilution marked EUR 0.83. The dividend proposed by the Board is EUR 0.42 per share (from 0.24).

In the fourth quarter, operating revenues increased by 51% to EUR 106.0 million from the same period of the prior year. EBITDA was up by 77% to EUR 55.8 million, and profit for the period amounted to EUR 46.8 million. 

Key events during the fourth quarter of 2019 include the continued expansion in North America, with an ongoing process to build a studio in Pennsylvania; good leverage from investments made in 2019, which contributed to continued high growth. Several new customers were signed, including Flutter Entertainment with its brands Paddy Power and Betfair; Parx Casino and Penn National Gaming.

CEO Martin Carlesund, who presented the report Wednesday along with CFO Jacob Kaplan, said he was satisfied to present another strong quarter that summarises "a successful 2019 for Evolution." He noted the products the firm launched during the year, including new titles in the Game Show category, in combination with continued strong market development and global demand, have contributed to a very high growth rate. Furthermore, he underlined strong results from the investments in increased studio capacity Evolution has made in recent years. "Those factors, in combination with a constant pursuit of cost efficiency, has had a positive effect on our margin,” he explained.

The EBITDA margin for the full year reached 50 percent, the highest full-year margin in the company’s history and slightly surpassed Evolution's expectations from this summer, which was 47-49 percent, according to Carlesund. For 2020, the firm expects to be able to maintain or slightly improve the margin level compared to 2019.

At the end of the fourth quarter, Evolution had more than 700 tables serving over 200 customers. "We see good opportunities for continued positive development in the US. In the quarter we have made additional investments in the studio in New Jersey to expand its capacity, our game portfolio and to meet the demand. It is also positive to note that during the quarter Michigan has taken important steps toward becoming a regulated casino market," Carlesund said.

Evolution has recently finished this year’s edition of ICE London, where it showcased 12 new titles. "With ground-breaking games like 'Crazy Time' and 'Mega Ball', we will continue to expand the Game Show category and aim to attract new player groups to Live," he added. "Examples of innovations on show in table games are Instant Roulette, Power Blackjack and Speed Blackjack. The dice game Craps, an important strategic release primarily for the US market, will also be interesting to follow. These are some examples of how we through innovative product launches continue to drive the entire industry forward and confirms our position as the leading innovator in the gaming industry. I am convinced that the new game titles will be received well by both players and operators and contribute to further growth in 2020."