World leader in live dealer gaming Evolution Gaming released an interim report for the first nine months of 2020, posting strong Q3 growth in revenue and earnings. Total operating revenue for the three-month-period ending September 30 amounted to €140.2 million.
Exceptional Third Quarter
Evolution Gaming reported exceptionally high activity levels during the third quarter which led to 47.8% jump in total operating revenue, from €94.7 million in Q3 2019. Further analysis by the company showed the revenue was due to commission income from existing customers.
The continuous launch of new titles and the variations on traditional table games kept demand for live casino games strong during the quarter, Evolution Gaming pointed out. The launch of the company’s new game, Crazy Time, on July 1, has turned out to be the most successful game launch in Evolution’s history, Evolution Gaming CEO Martin Carlesund outlined. The quarter also featured the launch of instant roulette and craps is about to go live during Q4, the chief executive officer added.
Evolution Gaming posted 150.4% rise in revenue in Asia year-on-year, to €34.8 million, while revenue from the Nordic area declined 4.9% to €5.8 million. In the UK, Evolution Gaming generated 25.8% less, €9.5 million, but the rest of Europe’s markets jumped more than 40%, to €65.6 million.
Contribution from North America was €9.2 million, up 50.8%, while the rest of the markets contributed to €15.1 million, up 62.4%. Evolution’s revenue from regulated markets accounted for 45.2% of total revenue for the company during the third quarter.
US Growth Importance
Evolution CEO Carlesund paid special attention to the growth in the US, in the light of the recent entry in Pennsylvania and the plans for further expansion in the wider US market. Evolution was active during the third quarter, signing partnership deals with BetMGM and PointsBet.
“Regardless of the timing for regulation in additional states we know that Evolution is well positioned and that the US market is a long-term project with very high potential.”Martin Carlesund, CEO, Evolution Gaming
Third quarter operating profit came out at €83.6 million, almost double on last year’s Q3 profit of €42 million, and earnings before interest, tax, depreciation and amortization (EBITDA) up 86.4%, to €90.4 million.
Martin Carlesund also provided an update regarding the SEK19.6 billion merger deal with NetEnt, which is expected to close before the end of 2020. With regards to the launched investigation by the Competition and Markets Authority (CMA) in the UK, Evolution Gaming extended the period for NetEnt shareholders to accept the acquisition bid until November 20.