2018 Results Presentation from Evolution

Evolution Gaming continued its march toward live gaming dominance through 2018.

Just how successful this march has been was laid out in their 2018 year end financial results, presented by CEO Martin Carlesund yesterday.

The headline numbers are impressive. Well, for investors anyway. Not so much for us players.

There were year on year increases of:

  • 38% for operating revenues, with the company taking almost a quarter of a billion Euros, and
  • 34% for profit.

financial results

But it’s the numbers behind the financials that are really impressive.

At the end of Q3 2018 they boasted a total of 500 live dealer tables across their numerous studios. A large operation to be sure. That number was revised to 550 for the year end presentation.

That’s a lazy 50 new tables added during the last 3 months 2018!

Expansion didn’t slow after year end. FTEs (Full Time Equivalents) at year end numbered 4,300. As the CEO was presenting this figure, he noted that the number had already grown to 6,000 halfway into February 2019.

It would take a brave person to bet they still have only 550 tables right now.

highlights

A little perspective on 550 (+) tables. If Evolution Gaming were a traditional bricks and mortar casino, they would be the second largest casino in Macau (by number of tables), behind only the Venetian Macau.

They’d be the largest casino in Las Vegas and the largest casino in Europe by a considerable multiple.

A lot of this expansion is coming out of the Tbilisi, Georgia studio which opened early 2018 and is now their second largest studio after Riga. It’s expected to absorb the lion’s share of European customer demand for new tables over the next couple of years so should continue to grow rapidly.

Also, demand for local language dealers driven largely by newly regulated EU markets, will see a new larger Malta studio go live during 2019. We can expect to see plenty of new tables with Swedish dealers in the wake of their recently re-regulated market, and the number of large operators that have decided to be a part of it.

When asked how many tables are expected to be added in 2019, Carlesund didn’t give an absolute number, but did say all of their studios have excess capacity to absorb additional demand as required.

new studios

A lot was said of new games on the way. Understandably, with seven new titles showcased at last week’s ICE exhibition.

When pressed on which of these new games was expected to have the biggest impact, the CEO said he would be reluctant to single out one particular game, but did then proceed to talk a lot about how excited he was about Monopoly Live, a Monopoly themed version of Dream Catcher.

new games

Interestingly, North America was highlighted as an area of future growth. Below is an excerpt from the CEO comments in the press release.

“With the business of Ezugi, we further extend our footprint especially in the US, while also gaining more studio capacity and resources within product development. Another key activity in North America will be to roll out more games”

There was no mention of the DoJ’s recent Wire Act about face in the release, or presentation. The outlook for live gaming in North America was described as fantastic with the prediction that the US will become as big as Europe in time.

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