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Evolution Publishes Interim Report for the Third Quarter of 2023
Evolution has published its interim report for the third quarter of 2023.
Highlights
Third Quarter of 2023
- Operating revenues increased by 19.6% to EUR 452.6 million (378.5)
- EBITDA increased by 22.1% to EUR 318.6 million (261.0), corresponding to a margin of 70.4% (69.0)
- Profit for the period amounted to EUR 272.8 million (221.3)
- Earnings per share amounted to EUR 1.28 (1.04)
January-September 2023
- Operating revenues increased by 26.1% to EUR 1,323.3 million (1049.3)
- EBITDA increased by 27.6% to EUR 930.5 million (728.9), corresponding to a margin of 70.3% (69.5)
- Profit for the period amounted to EUR 788.0 million (619.9)
- Earnings per share amounted to EUR 3.69 (2.91)
CEO Comments:
“In the third quarter, Evolution reports revenue of EUR 452.6 million and EBITDA amounting to EUR 318.6 million, corresponding to almost 20 percent top-line growth and 70.4 percent EBITDA margin. This is a good financial performance and the underlying growth drivers for the business remains solid. During the third quarter we released more games than during any earlier quarter. A strong development that I am pleased with as entertaining games and a flawless player experience are the absolute most important factors for our long-term success.
“Our Live Casino revenue grew to EUR 385.8 million for the quarter and we see a higher demand for our product than what we currently can deliver. That is a measure of the phenomenal traction our games have. However, it also means we are not expanding our studios at the right pace. However, it also means we are not expanding our studios at the right pace. We have faced delays, and in some cases not executed fully, in several of our planned studio projects for this year but even more importantly we need to increase the pace of recruitment both in existing studios as well as to support new studios. We are working hard to get back on track in our existing locations and we will continue to invest in our network of studios and add new locations. We opened a smaller studio in Colombia just after the end of the third quarter. We plan to open one new studio in Europe later this year and 3-4 next year in Europe, North America and LatAm.
“RNG revenues amounted to EUR 66.8 million and declined 1.9 percent compared to the corresponding quarter last year. Despite the step back in year-on-year growth it was a quarter when we made progress in our RNG operations. Our release pace is now where we want it to be and all new games are from the third quarter on OSS (One Stop Shop). We are methodically and systematically moving our RNG business forward. Our earlier communicated goal for RNG growth remains but at the moment we focus on showing step-by-step improvements.
“We are focused on factors that are within our control when explaining our financial result. However, this quarter the impact from external factors such as currency effects are more significant than ever. The strengthening of the Euro against most currencies has affected our top line growth negatively during this year. Players deposit and play in many different currencies with our operators, the resulting GGR is converted to Euro which is the base for our invoicing. In the third quarter we estimate 6-8 percentage points negative headwind on revenue growth from currency effects when comparing revenues to the same quarter last year.
“The group EBITDA margin is 70.4 percent during the third quarter. We maintain our guidance of 68-71 percent EBITDA margin for the year. Coming into the final quarter of the year I do expect us to be in the upper end of that interval even with a full focus on expansion.
“Our ability to deliver new and exciting player experiences is one of our main competitive advantages and I am pleased to say that we are on track to exceed our plan of more than 100 games released in 2023. In the third quarter we released 28 RNG titles and 8 Live games. We have had a continued strong development of our disco themed Funky Time which launched this spring, adding new dimensions to our popular Game Show portfolio. At the G2E show earlier in October we presented two new releases: Red Door Roulette — an innovative mash-up of Crazy Time and Lightning Roulette — and Video Poker, a Live Casino game offering the ultimate fusion of nostalgia and player-focused modern gaming technology. We also released many new and exciting slots, some of my personal favorites this quarter are The Crypt from Nolimit City and Max Megaways 2 from BTG. As stated, 2023 will be backend loaded in terms of releases both for Live and RNG and I am excited about what the last months of this year will bring from a product perspective.
“North America is a region that we expect to develop over many years as more US states regulate. The online casino market is still in an early stage of development. We continue to see growth for our Live product quarter to quarter in the existing states, while we in the past quarter take a step back in our RNG revenue compared to the second quarter. Together this results in a 9 percent growth in North America compared to same period last year but a slightly lower revenue in the third quarter compared to the second quarter. Asia and Latin America both grow 35 and 39 percent respectively from last year and Europe shows a steady 10 percent increase. The growth compared to third quarter of last year is organic in all regions as the latest acquisitions were included in the group then.
“In summary, the underlying growth drivers remain unchanged. We face a tougher macro climate today than one year ago and we are underserving the market at the moment, but we will continue to invest, optimize recruitment and, as always, push for growth through focus on product innovation. Our financial strength will continue to serve us well as we can continue to invest without interruption and grow. We remain committed to delivering new thrilling experiences to new and existing players and continue to strive to be just a little better every day. I look forward to the final months of the year and onwards into 2024.”
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Evoplay adds Penalty Shoot-out: Super Cup to iconic series
Evoplay, the award-winning game development studio, has released Penalty Shoot-out: Super Cup, the latest addition to its acclaimed instant game series. Inspired by the success of the previous two titles, this new release combines the best elements of both games to deliver an even more immersive experience.
The fan-favourite series adds its third title, a football-themed game where players take on the role of penalty takers, delivering a realistic stadium experience with dynamic visuals and a captivating atmosphere.
Each round features five penalty shots, where players can strategically aim at their chosen target or opt for a random selection. Scoring all five shots triggers the Super Win, awarding the title of Game Champion and maximum rewards.
Outcomes are determined by a random number generator, with successful shots offering multipliers that can boost winnings up to 32x the bet.
Designed with flexibility in mind, Penalty Shoot-out: Super Cup is optimised for both mobile and desktop platforms.
With its engaging features, striking visuals, and football-inspired soundtrack, Penalty Shoot-out: Super Cup stands out as a valuable addition to any operator’s portfolio, catering to both sports fans and instant game enthusiasts.
Ivan Kravchuk, CEO at Evoplay, said: “Penalty Shoot-out: Super Cup brings the excitement of football’s most iconic moments to the iGaming world.
“By merging the energy of a penalty shootout with instant game mechanics, we’ve created a title that offers widespread appeal. We’re confident it will engage players and deliver strong results for our operator partners.”
The post Evoplay adds Penalty Shoot-out: Super Cup to iconic series appeared first on European Gaming Industry News.
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Regulating the Game Adds Session “Industry Collaborations in Research” to Provide Guidance for Best Practices
Gambling law and regulation conference Regulating the Game announced an insightful session titled “Industry Collaborations in Research,” presented by Tracy Schrans, President of Focal Research Consultants.
This session will delve into findings from Focal Research’s groundbreaking collaboration with the University of Nevada, Las Vegas International Gaming Institute, addressing the critical question: Is there a right time to interact with players during a continuous play session?
The presentation will feature:
• An in-depth analysis of real-world behavioural tracking data.
• Insights into who is more likely to engage in extended play sessions and why.
• Practical implications for safer gambling practices, including identifying optimal times for player interactions to prevent and minimise harm.
“While the findings challenge traditional assumptions about continuous play and risk, they provide invaluable guidance for shaping best practices around player interactions,” the organsers said.
Tracy Schrans, alongside Dr. Tony Schellinck, pioneered the use of player-tracking data to develop algorithms for detecting and managing customer risk and harm. As President of Focal Research Consultants, she leads innovative research and collaborates with global stakeholders to set new standards for responsible gambling. Her work has received international acclaim for leveraging data and technology to identify at-risk gamblers and implement harm mitigation strategies effectively.
“Through research-driven insights, we can redefine when and how to engage with players in ways that prioritize their safety and well-being. This session highlights the power of collaboration between industry and academia to advance responsible gambling practices,” said Tracy Schrans.
Attendees will gain actionable insights into how cutting-edge research can drive more effective gambling harm prevention strategies. “This session is a must for industry leaders, regulators, and stakeholders seeking to enhance their understanding of player behavior and develop evidence-based solutions,” organisers said.
Regulating the Game is a flagship event, that brings together global leaders, regulators and industry professionals to tackle public policy and regulatory challenges. The conference fosters meaningful dialogue and innovation to support efficient and effective gambling regulation. The conference will be held at the Sofitel Sydney Darling Harbour from March 10–13, 2025.
The post Regulating the Game Adds Session “Industry Collaborations in Research” to Provide Guidance for Best Practices appeared first on European Gaming Industry News.
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ELF and DAZN Sign New Partnership
The European League of Football (ELF) and DAZN, the world’s leading sports entertainment platform, have signed a new eight-year partnership that will see DAZN broadcast all 101 games of the 2025 season. DAZN will become the exclusive OTT provider with a new “ELF Game Pass” product and will become the single destination where fans of the competition can watch every game.
This deal will grow the reach, discoverability and global popularity of ELF as ELF Game Pass will join NFL Game Pass, National League, Rally TV, PGA Tour Pass and FIBA’s Courtside 1891 as a standalone add-on channel within the DAZN platform. All these channels are available as part of an enhanced and upgraded DAZN subscription or as a standalone service, offering fans unparalleled choice and customisation.
With DAZN, ELF will be available in over 200 markets, across multiple internet-enabled devices and distribution channels, and benefit from DAZN’s marketing expertise and innovative product development. The flexibility and delivery-focused nature of DAZN’s platform enables live and on-demand content to be streamed at scale, while also providing the capability to localise in key markets.
“The long-term partnership with DAZN marks a landmark moment in ELF’s history. With DAZN at our side, we can continue to drive forward our vision of establishing American football as an integral part of the European sports scene and popularising it worldwide. The combination of an innovative platform and enormous reach will allow us to bring the games and stories of the ELF to millions of fans around the world. This is a huge step for the league, its franchises and football in Europe. We are convinced that this collaboration will play a key role in growing our fan base, further igniting passion for the sport and taking the European League of Football to a new level,” said Zeljko Karajica, Managing Director of the ELF.
Shay Segev, CEO of DAZN Group, said: “The European League of Football is a dynamic newcomer in European sport. As the International Home of NFL Game Pass, DAZN is driving the rapid growth in popularity of American Football in Europe. The ELF has proven its potential to drive this further. Our mission at DAZN is to offer the most attractive and diverse experience, and the ELF shares this ambition with its dynamic and top-tier content. With this partnership, DAZN will create a global home for the ELF, reaching new audiences and growing the popularity of American Football in Europe.”
The fifth season of the European League of Football kicks off in mid-May with 16 teams from nine nations: Defending champion Rhein Fire, Berlin Thunder, Hamburg Sea Devils, Munich Ravens, Stuttgart Surge, Frankfurt Galaxy, Cologne Centurios (all Germany), Vienna Vikings, Raiders Tirol (both Austria), Fehérvár Enthroners (Hungary), Panthers Wroclaw (Poland), Prague Lions (Czech Republic), Helvetic Mercenaries (Switzerland), Madrid Bravos (Spain), Paris Musketeers (France) and newcomer Nordic Storm (Denmark).
The existing ELF direct-to-consumer OTT product will be shut down and the channel will be fully aggregated into the DAZN ecosystem. Ahead of the new season, customers will receive communications on how to access the product on the DAZN platform.
The post ELF and DAZN Sign New Partnership appeared first on European Gaming Industry News.
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