May 27, 2021 2 min read


Evolution Sees Online Gambling Expansion to Continue

Supplier of gambling technology Evolution was the focus of a comprehensive report published by Reuters, claiming online casinos represent the future and will gradually eat up market share from land-based gaming facilities.

Fast Growth Will Continue

Evolution management strongly believes the rapid expansion of the online gaming segment spurred by lockdowns was not a one-off occurrence but a strong trend that will continue to define the industry in the future and maintain Evolution’s growth in the process.

Over the past year, shares of the Swedish gambling technology supplier jumped 170% as demand for online casino games grew during the period when people had nothing else to do but play. As a result, the company which started with a market capitalization of just than $3 billion in 2015, reached a total market value of $38 billion, positioning itself among the country’s largest 10 listed entities.

In the summer of 2020 Evolution announced a strategic deal to acquire Swedish competitor NetEnt AB and gain access to some popular slot titles, and Evolution CEO Martin Carlesund expects more such deals to happen in the future in any part of the world as the company seeks to establish a presence in all regulated gaming markets.

Boasting a customer base of more than 500 B2B clients among which prominent names such as Gibraltar-based brand 888 Casino and Malta-licensed Betsson, Evolution finished 2020 with exceptional growth as operating revenue jumped more than 50%.

Impressive 2021 Start Reason for Optimism

In 2021, Evolution picked right where it left in 2020, posting Q1 revenues up 150% year-over-year to beat market expectations, driven mainly by the company’s operations in North America where revenue tripled and in Asia where it doubled, and industry analysts believe fast growth will continue as long as the company continues to rely on innovation.

Though Evolution is continuing to extend its lead with competitors, there are other factors such as political risks and key personnel leaving the company that could potentially thwart current developments.

One of Evolution’s main rivals, London-based Playtech, also posted an impressive 2021 first-quarter financial performance, and according to Carlesund, Evolution is also in competition with media brands such as Netflix in the net-based entertainment segment.

Evolution CEO remains optimistic about the future growth prospects of the gambling technology supplier, forecasting the company could reach an operating earnings before interest, tax, depreciation and amortization (EBITDA) margin of 65%, while relying on regulated gambling expansion in the US for the long-term future.

Lead Author

With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.

Leave a Reply

Your email address will not be published. Required fields are marked *