Evolution's quarterly earnings jump on casino games boost (updated)

Betsson AB

21/07/2021 07:07

(Adds details on results, background, CEO comments)
    STOCKHOLM, July 21 (Reuters) - Sweden's Evolution AB
 EVOG.ST  reported a 115% jump in second-quarter core earnings,
beating market estimates, as the pandemic boosted demand for
online casino games, particularly in the United States.
    The company, which makes online slot machines and roulette
games, has seen more customers turning to online games and the
United States becoming a growth market as more states consider
making online gambling legal to boost tax receipts. 
    Evolution, which has more than 500 customers including 888
Casino  888.L  and Betsson  BETSb.ST , bought Swedish rival
NetEnt for $2.12 billion last year, handing it popular slot
games such as Starburst and Piggy Riches.
    Apart from buying companies, the company has also been
launching new studios. Its studio in Michigan - the third in the
United States - is approved and ready for launch, and the
company plans to add two new delivery hubs in Europe this year.
    However, the pandemic has slowed down its expansion plans.
    "The overall situation is improving but it is still very
hard and the pandemic is not over," CEO Martin Carlesund said in
a statement.
    Evolution's quarterly EBITDA rose to 174.7 million euros
($205.69 million) beating the mean forecast of 172.3 million
euros, according to Refinitiv estimates, and its corresponding
margin rose to 68%.    
    "Our EBITDA margin reached a new high level during the first
quarter this year, a level that we maintained this quarter and I
expect to maintain also during the rest of the year," Carlesund
said.
    Shares of the company has nearly doubled in the last 12
months.
    
($1 = 0.8493 euros)

 (Reporting by Supantha Mukherjee in Stockholm; editing by
Niklas Pollard)
 ((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004;
Reuters Messaging:
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