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Evolution Gaming’s Interim Report For January-September 2019

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Evolution Gaming - INTERIM REPORT FOR JANUARY-MARCH 2020
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Evolution released today its Interim Report for January-September 2019.

Third quarter of 2019 (Q3 2018)

  • Operating revenues increased by 47% to EUR 94.7 million (64.3)
  • EBITDA increased by 73% to EUR 48.5 million (28.0), corresponding to a margin of 51.2% (43.5)
  • Profit for the period amounted to EUR 39.8 million (21.2)
  • Earnings per share amounted to EUR 0.22 (0.12)

January-September 2019 (9M 2018)

  • Operating revenues increased by 48% to EUR 259.8 million (175.2)
  • EBITDA increased by 67% to EUR 127.1 million (76.1), corresponding to a margin of 48.9% (43.4)
  • Profit for the period amounted to EUR 102.9 million (57.9)
  • Earnings per share amounted to EUR 0.57 (0.32)

Events during the third quarter of 2019

  • Positive effects from investments in games and studio capacity
  • All geographic markets contribute to the high growth
  • Pennsylvania Gaming Control Board license received

Summary of the third quarter and first nine months of 2019

Evolution Gaming Q3 Interim Report 2019

 

Comments from CEO Martin Carlesund: “I am very satisfied to report consistently strong results for the third quarter. Our investments in new games and studios are having an increasingly strong impact, which is reflected in both the high growth as well as stronger margins. We have also seen a further increased demand for Evolution’s products globally. In addition, we now see clearly that we are reaching completely new player types, who to a large extent are playing Live games for the first time. These new players are being converted from other game categories, such as slots, which is very encouraging to see. Through our expansion and construction of studio capacity, together with the 10 new games launched during the first half of 2019, we are also favourably positioned to take advantage of the growing general demand for Live.

Revenues in the third quarter amounted to EUR 94.7 million, an increase of 47 percent compared to last year. EBITDA amounted to EUR 48.5 million, with a margin of 51.2 percent. For the nine-month period, the EBITDA margin was 48.9 percent. Based on this outcome, we will end up slightly above the previously communicated margin range of 47-49 percent for the 2019 full year.

Evolution’s products experience high demand all over the world, which can be seen in our growth which is truly global. To increase the understanding of our geographical reach, starting in this report we will break down our revenues per region. We are growing together with our customers in all regions, with the highest growth in Asia and North America. We expect this development to continue and it reflects the operators’ focus on new growth markets. In some regulated markets in Europe, online casino has entered a more mature phase, but Live Casino as a vertical continues to grow its share of the total market.

As previously communicated, we continue to invest in additional studio capacity to meet the total demand for Live. Our all-new studio in Malta is now operational, and we are also continuing to expand our existing studios in both Georgia and New Jersey. In Georgia, we have now doubled the capacity since the launch of the studio in April 2018. By the end of the year, we will also have doubled the capacity in New Jersey in order to add more games from our portfolio and to allow additional space for dedicated customer environments. Currently, we offer 9 out of 21 game titles from our portfolio to operators in the state.

During the quarter, we received an Interactive Gaming Manufacturer licence from the Pennsylvania Gaming Control Board, which is a prerequisite to be able to offer our services in Pennsylvania. Based on our experience in New Jersey, we see great opportunities to attract both online operators and land-based casinos with our offering. Planning for the studio is in full swing with launch during 2020.

After the end of the quarter we have signed an agreement with Flutter Entertainment and its successful brands Paddy Power and Betfair. The deal is the result of a dialogue that has been going on for many years, and which has been intensified thanks to our latest innovations. We look forward to developing this partnership over time.

For us, 2019 has been a year of products and innovation. We have further strengthened our development capabilities and going forward, we will keep up the pace in the development of new games. Behind the scenes, the work to develop our core games while also expanding the Live vertical with new innovations is always ongoing. When we publish the 2019 year-end report in February, ICE 2020 will have just ended. As in previous years, our ambition is to pave the way for the entire industry by launching new ground-breaking products.

The absolute core of Evolution is built on innovation with a focus to meet the demand for Live and to constantly increase the gap to the competition. I have a confident view of what the future will bring. “

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Maximising Your Cross-Market Appeal

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Maximising Your Cross-Market Appeal
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With Bitblox introducing an entirely new breed of crypto-based price prediction games to the iGaming industry, we talked to CEO, Brandt Page, to discover how combining elements of both chance and skill with lightning-fast betting rounds has helped improve their cross-market appeal.

 

When Bitblox was first established, our core concept was relatively simple; we didn’t just want to provide players with a new twist on an existing format like slots or casino games, but instead sought to create an entirely new vertical that combined elements of chance and elements of skill.

One of the main drivers behind this decision was the fact that we wanted our releases to appeal to as broad an audience as possible – and I think from the figures we’ve seen so far, we’ve already had some notable success on that front in terms of the players that are engaging with our games.

Funnily enough, I was recently talking to the Head of Marketing from one of the operators that we work with and they told me they were struggling to place our games optimally. Initially, they’d put them in with crash and instant win content, but they soon discovered a lot of their in-game traffic was coming from sports bettors. A move to the sports betting tab followed, but the exact same-thing happened with casino players, leading to the games eventually winding up on the front page.

As this was going on, our games were continuing to post solid numbers with the customers who bet on both sports and casino – and all of this engagement was coming without there being any additional promotion from us or the operator. So why was it that our games were performing so well across these different player segments? I believe there are a number of contributing factors.

First and foremost, having this hybrid model of games of chance and games of skill that I’ve already mentioned has placed us in a fairly unique position within the iGaming industry. On the one hand, the simple premise of our Bitcoin-based titles – coupled with their attractive designs and intuitive UI – makes them highly accessible to casino players who are just looking to have fun.

On the other, the fact that Bitblox games aren’t based on RNG and are instead pinned to the real-time movements of the Bitcoin market certainly resonates with a sports betting audience. As they have the ability to follow the charts and use this information to inform their decisions, they definitely feel they have more control over the outcome than if they were playing a traditional slot.

Another key aspect of our cross-market appeal is the fast-paced nature of all Bitblox releases. With casino players being accustomed to the quick wins and instant gratification of slots and crash games and sports bettors also showing a growing preference for in-play wagering, we’ve ensured each game round is resolved quickly and that there are multiple opportunities for betting.

When we first launched Up or Down?, which features one-minute betting rounds, we soon learned that even this timeframe is too long for some players. This resulted in us developing Up or Down? Turbo – a game which kept the same mechanics as its predecessor but reduced the betting window to 20 seconds – and this has gone on to become one of our most successful titles.

Keeping all this in mind, one of the things I’m most excited about is the upcoming release of our latest game, 3 in a Row, as I think this is a title that really ties everything I’ve talked about so far together. Designed to look like a slot machine, 3 in a Row challenges players to correctly predict how the Bitcoin price will move over three separate 20-second windows for even bigger payouts.

Intended to appeal to casual users and serious sports bettors alike, players can elect to either spin the reels for fun and select a random price sequence or use the bet builder feature to put together their own custom prediction. With the latter essentially functioning like an accumulator bet, players can select up to three possible combinations – i.e. Up/Up/Up, Up/Up/Down etc – and only one result needs to land for them to win, ensuring they stay engaged until the final seconds.

I believe that 3 in a Row can help build on the strong foundations we’ve laid down with casino and sports bettors and provide operators with another popular option that offers significant cross-market appeal. Based on what we’ve seen from previous Bitblox releases, the audience for titles that combine elements of chance and elements of skill is definitely out there – and I’m looking forward to our unique brand of crypto-based games being enjoyed by even more players in future.

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Gaming Corps to launch with lotteries in the USA via EQL games deal

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In-demand content provider extends reach into largest iGaming market in the world with its full suite of games made available via iLottery aggregation platform

Gaming Corps, a publicly-listed game studio based in Sweden renowned for creating industry-leading games, has made its debut in the US market through a breakthrough agreement with leading lottery provider, EQL Games.

The distribution agreement will see Gaming Corps’ full suite of games made available to EQL Games’ powerful iLottery Aggregation Platform, developed to provide lottery operators across America with direct access to a portfolio of proprietary and third-party games.

Following the integration, EQL Games’ lottery operator partners will be offered proven Slots, Table Games, Multiplier Games, Mine Games and Plinko Games, as well as titles under Gaming Corps’ innovative and trademarked Smash4Cash™ series.

The deal and integration come at a time of growing demand among online lottery operators in the US for non-traditional content, a format that Gaming Corps has excelled in, especially with its Smash4Cash™ games, which have been a hit with players in global markets.

EQL’s aggregation platform has been developed to allow online lottery operators to quickly and easily access content from multiple game studios simultaneously through one integration and one commercial agreement.

Its iLottery Aggregation platform simplifies the process of adding new games to an online lottery brand across regulated states. In addition to the third-party content provided via its aggregator platform, EQL Games has a portfolio of in-house titles.

This includes games produced under licence with Team USA which were rolled out by several state lotteries for the Olympic and Paralympic Games in Paris this year, with new titles being planned ahead of the Winter Games in Milan (2026) and the Olympic and Paralympic Games in Los Angeles (2028).

Juha KauppinenCEO of Gaming Corps, said: “The USA has always been somewhat of the holy grail for game developers like us, which has been further emphasised as markets in several states have become regulated. The potential in the American market is enormous, and the impact for us is a bit difficult to assess, but we have great hopes for the collaboration with EQL Games, which has an impressive platform towards U.S. lotteries.

“We believe it will have a significantly positive impact on our revenues. I would like to personally take the opportunity to thank EQL Games and Brad Cummings for the collaboration, and we are now working hard to complete the integration so that all our games will be offered to EQL’s customers via their platform.”

Brad CummingsCEO of EQL Games, added: “Including Gaming Corps as a supplier to the EQL Games iLottery Aggregator is an exciting step forward in our mission to offer unique, high-quality content to state lotteries. Gaming Corps’ expertise in iGaming, along with their unique game portfolio, fits perfectly with our vision of enhancing the lottery experience through dynamic and engaging content.”

 

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Industry News

Public Voting Starts for Ortak x B.F.T.H. Arena Awards 3.0

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The highly anticipated Ortak x B.F.T.H. Arena Awards 3.0 has officially entered the public voting phase as submissions are closed.

More than 70 game providers have turned in over 160 submissions, including Tom Horn Gaming, Pragmatic Play and RubyPlay. Public voting involves enthusiasts casting their votes to pick the winner of the Game of Public Choice category.

The Public voting phase ends on December 1st 23:59 GMT+4.

Concurrent to public voting, the first phase of private voting also starts during which all participants who have submitted entries get the chance to vote for one favourite in each category. An international auditing company oversees this phase to eliminate duplicate votes and self-votes. This phase ends on November 19, 23:59 GMT+4.

The second phase of private voting will also take place with a jury of industry experts making their decisions based on the shortlist picked by participants during the first phase.

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