Evolution Posted Exceptional Second Quarter and H1 Growth

Gambling technology supplier Evolution released today an interim first half-year update, posting more than double operating profits as the industry continues to accelerate.

Second Quarter Summary

The company revealed revenues in the second quarter of 2021 reached €256.7 million ($320 million), an increase of 100% from the €128.3 million ($151 million) posted in the respective quarter of 2020, leading to earnings before interest, tax depreciation and amortization (EBITDA) to increase by 115% on the €81.1 million ($95 million) and hit €174.7 million ($205 million), corresponding to a margin of 68%.

“Strong demand contributed to the margin development in the quarter, but as we have stated several times, in a trade-off situation between margins and growth, we will always go for long-term growth.”

Martin Carlesund, CEO, Evolution

Profit for Q2 2021 amounted to €144.4 million ($170 million), more than double year-over-year from the €70.4 million ($83 million) in Q2 2020. The increase in profits led to earnings per share of €0.68, compared to €0.39 posted in the respective quarter in 2020.

The main driver behind the exceptional growth in the quarter was the Live Casino vertical which posted a 59% increase compared to Q2 2020 as worldwide demand continued to accelerate and Evolution continued with its emphasis on products and innovation.

The quarter also saw the completion of the acquisition of Big Time Gaming which was announced in April, to add its portfolio of slot brands and game mechanics and further consolidate Evolution’s offering.

In the UK, Evolution entered an agreement with Entain to offer online games on the Ladbrokes, Coral, and Gala platforms, while in the US, where new markets ”open up state by state”, Evolution is ready to launch its Michigan studio, the 3rd to operate nationwide.

First Half Figures

For the period January-June 2021, operating revenues reached €492.5 million ($579 million), compared to €243.5 million ($286 million) for the first 6 months in 2020. EBITDA for the period jumped to €334.8 million ($394 million), 130% up from the €145.3 million ($171 million) Evolution posted in the first half of 2020, corresponding to an increase in margin from 59.7% in H1 2020 to 68% in the first 6 months of 2021.

Profit from January to June amounted to €267.4 million ($325 million), an increase of 122% year-over-year from the €124.6 million ($146 million) generated in the first half of 2020. Earnings per share nearly doubled to €1.3 compared to €0.69 in H1 2020.

Speaking about the future outlook of the company, CEO Martin Carlesund outlined plans to open 2 new delivery hubs in Europe by the end of 2021, while for 2022 Evolution is planning to open studios in new markets like Latin America.