
Evolution Gaming revenue soars 50% ahead of NetEnt takeover
Live casino supplier recounts “intense and eventful” start to 2020 amid 90% Q2 EBITDA rise


Evolution Gaming has reported a 50% year-on-year rise in operating revenue to €128.3m (£116.4m) for Q2 2020.
Company EBITDA increased by 90% during the quarter to €81.1m (£73.6m) corresponding to a margin of 63.2%.
Profits during the period more than doubled, rising to €70.4m (£63.9m) from €34.5m in Q2 2019.
Company operating expenses rose by 10% year-on-year during Q2, although personnel costs did not increase compared to 2019, due to the closure of live casino tables during the coronavirus pandemic.
Investments in intangible assets grew to €3.4m (£3m) during Q2, an increase the company attributed to the development of new games and technical improvements to the platform, including new functionality.
Evolution Gaming’s cash flow from operating activities almost tripled during the quarter, increasing to €93.6m (£84.9m) from a previous Q2 2019 high of €35.3m. Cash flow from investing and financing activities both declined during the quarter, falling to -€8.7m and -€77.4m respectively.
Those quarterly rises were mirrored at a half-year level, with H1 operating revenue up 48% to €243.5m (£221m) and an 85% rise in company EBITDA, which hit €145.3m (£131.8m) and a margin of 59.7%.
H1 2020 company profits also grew, rising to €131.3m (£119.1m) from a previous 2019 high of €66.8m.
Evolution Gaming CEO Marten Carlesund said: “The quarter has been eventful with several product launches and a very high demand, partly due to the lack of sports betting games through a large part of the period, but we also see strong underlying growth,” said Carlesund.
Evolution’s live casino operation was affected by Covid-19, with some studios in Georgia forced to close in March due to lockdown restrictions.
Addressing the impact of the pandemic on the business, Carlesund said: “It has been an intense first half of the year impacted by Covid-19, which has entailed here-and-now problem solving.
“Since a few months back, we have a more stable virus situation and we have been able to devote more time to look forward while also preparing Evolution for a possible future second wave or similar pandemics,” Carlesund added.
The Evolution chief also revealed the company will soon open live casino studios in Michigan, as well as an English-speaking studio in Lithuania.
One major Q2 event saw Evolution Gaming table a £1.6bn bid for Swedish slots supplier NetEnt.
Regulus Partners analyst Paul Leyland said: “Evolution’s clear live casino focus has been a key organic strength, but it brings few of the skills needed to genuinely turn NetEnt around, in our view.”