Evolution reports near 100% annual rise in revenue and profit for Q3 2021

Evolution has recorded a 97% year-on-year upturn in revenue to €276m for Q3 2021.

The impressive annual growth was driven by increased commission income from both existing and new operator clients as demand for the live casino provider’s products continues to soar.

Evolution’s core live casino revenue rose by 53% annually during the reporting period to €214.5m.

Indeed, this increase was higher than pre-pandemic growth-rate levels, which implies that newly acquired players have decided to stick with Evolution products after the Covid-19 lockdowns.

Evolution’s RNG segment, including NetEnt and Big Time Gaming, generated €61.5m in Q3 revenue.

Big Time Gaming, which was fully consolidated in Q3 after being acquired for €450m in April 2021, demonstrated annual growth of more than 30% while contributing €10.6m in revenue.

NetEnt and Red Tiger, which Evolution took over in June 2020 in a £1.6bn deal, grew much slower at around 3% when compared to the same period of last year.

Evolution CEO Martin Carlesund revealed the supplier is working hard on a strategy to drive stronger growth across the NetEnt business moving into 2022 and is currently in the process of reshaping its entire RNG segment.

This strategy includes a complete rebuild of the NetEnt technical platform, as well as the launch of a new ‘One Stop Shop’ (OSS) integration product for the supplier’s online casino offering.

This technical overhaul has led to fewer new game releases in 2021 with resources prioritised elsewhere, although you would never know it looking at the bottom line.

EBITDA for Q3 increased by a whopping 113% to €192.9m, corresponding to a margin of 69.9%, as profit for the period nearly doubled amid a rise of 98% to €157.4m, up from €79.4m last year.

“The results for the third quarter have once again proven that our strategy to focus on the entertainment of the end-users and seamless and flawless experience is successful,” said Carlesund.

The US is a key area of focus for Evolution at present and the firm launched its live casino product to consumers in Michigan at the beginning of Q3.

After the reporting period, Evolution was first to market with its slot games in Connecticut. Live is expected to follow soon, with the Constitution State playing host to the supplier’s fourth US studio.

North America is now Evolution’s third biggest market, generating Q3 revenue of €31.9m.

Evolution’s share price decreased by more than 5% in early trading on Nasdaq Stockholm.