Evolution breaks €1bn revenue barrier in 2021

Evolution has posted a 90% year-on-year (YoY) rise for full-year 2021 revenue to €1.1bn as the live casino giant continues to dominate the market.

Revenue leapt from 2020 when the group posted €561.1m with the firm finishing Q4 2021 with €300.2m in revenue.

Breaking down Evolution’s revenue by geographic region, more than half of its revenue still comes from unregulated markets such as Asia.

Only 41%, or €123m, of Q4 2021 revenue came from regulated markets.

The rest of Europe accounted for the lion’s share of Q4 revenue at €105.6m while North America (€33.8m), the UK (€21m) and the Nordics (€20.9m) were the smallest revenue-returning regions.

Asia accounted for €90.8m of the total €300.2m in revenue for Q4 2021.

Revenue derived from RNG games also continued to grow in Q4 2021, rising from €17.8m in Q4 2020 to €62.9m. Live casino content accounted for €237.4m of Q4 2021 revenue.

Evolution also recorded a 121% YoY leap in EBITDA from €332.2m in 2020 to €734.7m in 2021, with a corresponding margin of 68.7%, up from 59.2%.

The live casino giant saw its profit for the period rocket 113% YoY from €284.6m in 2020 to €605.4m in 2021.

In November 2021, a report filed to the New Jersey Division of Gaming Enforcement alleged that private investigators had been able to access Evolution games from Iran, Syria and Sudan, all three of which are subject to US sanctions.

The report knocked billions off Evolution’s market value and triggered an internal review of operations.

Speaking on the publication of the report, Martin Carlesund said: “Towards the end of the quarter, a dubious, anonymous and falsified report with the clear intention to harm Evolution was published.

“We have over 15 years’ experience of operations in regulated environments and we are comfortable and confident in our ways of working, our business model as well as in our constant strive to improve in all areas.

“With the ambition to be even better, we will continue to work on all processes in relation to due diligence of our customers and their licensing and regulatory framework. The measures we have taken during the quarter have had insignificant financial effect,” he added.

Carlesund also reflected on a successful 2021 for Evolution noting: “Looking back at 2021, a year where several important milestones have been accomplished, I want to take this opportunity to thank and acknowledge the commitment and impressive work from all Evolution employees, who continue to strive to make Evolution just a little bit better, every day. It is an amazing global team and I look forward to an exciting 2022.”

Regulus Partners said: “In summary, Evolution’s geographic mix demonstrates a broader sector problem that we have been highlighting for some time: the highest multiple revenues may have a growth problem, while the highest growth revenues may have a multiple problem.”

Yesterday, the live casino giant revealed its product roadmap for 2022 which includes launching 88 new games across all of its brands.

Evolution’s share price was down 7.75% in early trading this morning to SEK1,030.80 (£83.42).