Existing customers drive Evolution Q2 revenues up 50%
Live casino provider also reports shrinking margin due to growth costs during the quarter
Evolution has recorded a 50% year-on-year jump in Q2 revenues, with the expansion mainly driven by growth from existing customers, the firm said this morning.
Revenue for the three months to 31 June totalled 27.1m, with EBITDA up 38% year-on-year to 10.6m.
Evolution said the resulting margin of 39% was down from 42% last year thanks to the costs of expansion, including new tables and studios.
“During the second quarter we have seen an exceptional growth in new tables and environments, which I believe is strategically very positive,” Jens von Bahr, CEO, said. “However, it puts pressure on the margin since a new table has a negative margin in the short term”.
The Stockholm-listed provider said the growth in revenues came largely from existing customers, with Unibet and Grosvenor among those revamping and expanding their live casino offerings.
New customers during the quarter included LeoVegas and GVC’s Casino Club brand, with the Ritz Club also launching a live casino product after the quarter had ended.
“The Ritz Club deal is a true milestone and something towards which we have worked for many years,” said von Bahr. “This also confirms the trend of land-based casinos seeking online solutions to strengthen their relationships with their customers.”
On the product side, Evolution launched a new game entitled âDouble Ball Roulette’, as well as a mobile version of Live Three Card Poker, which was launched by more than 50 customers in the quarter.
Mobile penetration for the period amounted to 40%, with von Bahr adding: “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.”
The chief exec also announced the company would be delaying its move from the Nasdaq First North Premier exchange to the main Nasdaq Stockholm list until Q2 2017.
He explained: “Despite our size in terms of personnel, we are still an agile and entrepreneurial organisation, in which flexibility is important â at the moment, we believe that management must devote all of its efforts to delivering the best product.”