Evolution Posts Strong 2020 Earnings

Evolution just posted its year-end and fourth-quarter reports for 2020. Fuelled by the higher demand for online casino games during the pandemic and the fast-growing company’s relentless push for innovation and market expansion, Evolution shows very strong fourth-quarter results and a 53% increase in operating revenues for 2020. The stock jumped 4% following the news and positive outlook for 2021.

Full-year 2020 (2019)

• Operating revenues increased by 53% to EUR 561.1 million (365.8)
• EBITDA adjusted for non-recurring items amounted to EUR 351,6 million (182,9), an increase with 92%, for a margin of 62,7% (50,0)
• Non-recurring acquisition and restructuring costs amounted to EUR 19.4 million
• EBITDA increased by 82% to EUR 332.2 million (182.9), corresponding to a margin of 59.2% (50.0)
• Profit for the period amounted to EUR 284.6 million (149.7)
• Earnings per share amounted to EUR 1.55 (0.83)
• The Board proposes a dividend of EUR 0.68 per share (0.42)

It has been a busy year for Evolution, which included a major acquisition of NetEnt and, with it, Red Tiger. With the $18m Ezugi acquisition in 2018, that makes a strong portfolio of not only live casino products but the Stockholm-listed company’s very promising Slots business. It should be noted that whereas Ezugi services are still operational, NetEnt’s live dealer operation has been shut down soon after the takeover. According to Evolution CEO Martin Carlesund, this was done to maximise synergies which made them discard existing structures and rapidly rebuild themselves in a joint version. Carlesund was also optimistic that this will result in EUR 10 million higher annual run-rate cost synergies than earlier communicated.

The year 2020 has also been one when Evolution Gaming was rebranded into Evolution. Many new and innovative table games also saw the light of day, including the first-ever live version of Craps and Crazy Time: Evolution’s most ambitious show game to date. As the CEO reassured in his comments, the company will continue to strengthen their Game Show-segment and increase the entertainment factor to attract and serve new player categories. Although the pandemic has brought on significant changes and challenges that have impacted the construction of new studios, Evolution expects to launch games from their new Michigan studio later this year. All the while the iGaming company is also looking to expand into South America and Africa.

The full online presentation of Evolution’s reports can be found here.