Revenue and profits up at live dealer provider

Live dealer technology and games supplier Evolution Gaming has reported strong Q4 and FY 2017 results, highlighting the following key performance indicators:

Q4-2017

* Operating revenues up 48 percent year-on-year to Euro 50.7 million (34.3);
* EBITDA up 74 percent at Euro 22.6 million (13.0), on a margin of 44.6 percent (37.8);
* Profit double at Euro 18 million (9.0).

Events during the fourth quarter of 2017

* Continued high growth and margin;
* High level of expansion in environments and tables;
* Focus on product development with several new games to be launched in 2018.

FY 2017

* Operating revenues up 54 percent y-o-y at Euro 178.4 million (115.5);
* EBITDA up 81 percent at Euro 80.6 million (44.6), on a margin of 45.2 percent (38.6);
* Profit at Euro 62.1 million (31.7);
* The Board has proposed a dividend of Euro 0.90 c per share (0.45 c)

CEO Martin Carlesund reported strong growth and profitability in both quarterly and full year results, noting:

“The quarter was characterised by intense expansion at our studios, resulting in increased cost levels compared with the third quarter. The company is in the midst of an investment phase, and we expect this to continue to drive costs during the first half of 2018. Looking at the margin, it will vary somewhat from quarter to quarter, although we have, at the same time, established a clearly higher level of profitability compared with Evolution’s historical average.”

Carlesund revealed that the company now has around 400 gaming tables in operation, and plans are well advanced for the introduction of more games in the coming year. He emphasised the new Lightning Roulette, a ground-breaking Roulette game that combines Live Casino with an RNG element, saying:

“In addition to all the classic Roulette features, players will have new possibilities to win through random-generated lucky numbers offering high pay-outs. The game environment is reminiscent of an entertainment show with advanced sound and lighting effects; a concept that adds a new dimension of excitement to the traditional table game and which we have already successfully established through our Dream Catcher product.”

Carlesund said the product was the first step in introducing table games that can be used in a purer RNG environment in a new category branded First Person Gaming. The products offer players an interactive first-person experience of the most popular table games, and also include a “Go Live” button that quickly takes the player to a Live Lobby and the complete range of Live Casino games, giving operators good cross-selling opportunities.

The company is also planning the launch of a new Salon Prive facility for super VIP players, offering high limits and private tables for individual players. Only selected individuals are given access to the environment, where they can expect personal service and opportunities to control the game round themselves.

The company is also strengthening its Baccarat portfolio with two new variants, No Commission Baccarat and Dragon Tiger, catering for the growing popularity of Baccarat.

Carlesund revealed that work is well advanced on the new Georgian studios of the company, which will be operational in the second quarter of 2018. The company went operational with its additional Vancouver studios earlier this month.

“On the whole, with new studios and exciting product launches on the cards, we see good prospects to continue strengthening our business in 2018, with a clear focus on profitable growth.” Carlesund concluded.

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