Unpacking Evolution’s 2021 year end results

Another year, another blockbuster set of financial results for Evolution.

We’ve become accustomed to near exponential growth each year. The headline results below show this has once again been the case.

Operating revenues were up 90% and eclipsed the €1 billion mark for the first time. Operating profit more than doubled to €352 million.

Some of this growth has been driven by acquisition. Notably the purchase of NetEnt whose results were included in the consolidated statements from December 2020. BTG’s were added from July 2021. The impact of these inclusions, shown in the RNG revenues line below is significant.

But more significant is the organic growth in their core business. Shown in the ‘Live’ line above, revenues from live casino games increased 49% year on year.

It’s a growing industry to be sure, but not to that extent. Evolution’s stated aim is to be growing their market share of this growing industry. Seems they’re managing that.

Growth has come from a number of areas.

There was continued rapid development in North American regulated markets. Pennsylvania and New Jersey continued to grow. Michigan joined the party during the year. Evolution has been front and centre powering live casino games in those states.

New and expanded studios have increased table capacity across the US and Canada. A Michigan studio started taking bets mid 2021. The next studio to open will be Connecticut in 2022.

Technology trends have also helped. Improved web connectivity and speeds, particularly in mobile with 4G and 5G continues to drive mobile play – now responsible for 70% of gross gaming revenues on Evolution’s games!

More markets, more devices, more customers and more tables to service them.

Across all studios the company added 300 live tables, taking the total number of operating tables to over 1,000 by the close of the year.

Another interesting piece of data that was reported – the total number of end user ‘bet spots’ (presumably individual bets placed) for the year was 20.9 billion.

Europe/UK remained the company’s major market, but one that is maturing. Asia and North America is where all the growth has come from during the year, and this trend is expected to continue for years to come.