Evolution Praise Strong Q3 Before NetEnt Deal Completion

Evolution has praised another strong quarter of the newly rebranded live casino specialists, as the organisation lauds regional growth before the possible completion of its NetEnt deal.

Based on an ongoing investigation by the UK Competition and Markets Authority into whether the proposed acquisition would reduce competition in the igaming industry in the region, the bid, which is subject to all required approvals from the relevant authorities, saw its acceptance period extended recently to 20 November 2020.

Martin Carlesund, CEO of Evolution said: “During the fourth quarter we look forward to closing the deal with NetEnt. We see a fantastic potential in combining the two companies and continuing to deliver the best playing experiences for players across the globe.”

The update comes in the company’s latest financial report, which saw sales grow 48 percent to EUR 140 million in the third quarter (2019: EUR 98.7 million) as the company steadily returns to pre-COVID levels in table numbers. The rise stems largely from higher commissions from current customers and, to some degree, from new customers.

The profit for the quarter amounted to EUR 79.38 million, reflecting a 100 percent rise from EUR 39.77 million, as EBITDA also rose by 87 percent from EUR 48.47 million to EUR 90.72 million.

On a year-to-date basis, sales again increased by 48 percent to EUR 383.47 million for the January-September reporting period (2019: EUR 259.75 million), profit for the period improved by 98 percent to EUR 204.02 million (2019: EUR 102.88 million), and EBITDA finished at EUR 235.99 million, an 86 percent leap from EUR 127.11 million.

Carlesund said: “I’m happy to report strong results for the quarter. Revenue amounted to €140m, an increase of 48 per cent compared with the third quarter of 2019. EBITDA amounted to €91m with a margin of 64.8 percent.

“The past quarter has also been a period of exceptionally high activity operationally within Evolution and after the end of the quarter we are live with our first tables in both Pennsylvania, USA and Kaunas, Lithuania. We are still dealing with the limitations imposed by COVID but we are slowly coming back towards pre-COVID levels in number of tables.”

The group also praised the ongoing initiatives in the German industry, with plans to grant licences for online casinos, including live casinos and slots, from July 2021 onwards.

Despite the expectation of a negative effect on sales during the current transition period, Germany, which accounts for between 5 % and 10% of group revenue, is projected to have a positive long-term impact on Evolution.

With several new customers signed and live status achieved in Pennsylvania, ongoing activities in the US also drew special praise, as the organisation ensures it is well placed with its “long-term project with very high potential” to achieve success.

“As I said in the beginning of this report we have a hectic Q3 behind us and now we look forward to an even more hectic Q4. We will continue to work relentlessly on all fronts to continue to be better every single day,” added Carlesund.