{"id":2015,"date":"2021-04-27T10:09:10","date_gmt":"2021-04-27T17:09:10","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=2015"},"modified":"2021-11-09T10:12:46","modified_gmt":"2021-11-09T18:12:46","slug":"evolution-growth","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/evolution-growth\/","title":{"rendered":"Evolution growth"},"content":{"rendered":"<h3>Evolution Q121<\/h3>\n<h4>The top line<\/h4>\n<p>Revenues soared 105% YoY to \u20ac235.8m (32.8% QoQ rise). EBITDA up 150% to \u20ac160.1m (66.4% QoQ). Live casino (77% mix) accounted for the majority of revenue growth, up 60% YoY; RNG (33% mix) up 6% YoY. Integration with NetEnt completed nine months ahead of schedule.<\/p>\n<p><strong>All about the margin: <\/strong>The truly impressive number comes with YoY margins rising a whopping 1220 basis points to 67.9%. The margin improvement is ahead of expectations and was attributed to \u201ccontinued high demand.\u201d This will be improved further by the addition of Big Time Gaming (deal announced earlier in April, \u20ac450m cash and shares) which in 2020 achieved margins of 88% on revenues of \u20ac33m in 2020. For reference, EBITDA margin for FY20 was 59.2%.<\/p>\n<p>Live casino continues to drive strong revenue growth at 60% annually and generated 77.9% of revenues per game type. Net Ent contributed 22.1% of revenues but growth of just 6%. Big Time Gaming had revenues of \u20ac33m in 2020 and EBITDA of \u20ac29m.<\/p>\n<p><strong>Think you\u2019re Big Time: <\/strong>Speaking of Big Time Gaming, there was no hint of any change of strategy when it comes to Megaways licensing. On the earnings call, Carlesund said: \u201cOf course, we see the potential for taking BTG into our distribution channels, which are bigger than what BTG has alone.\u201d<\/p>\n<p>When asked about the tension between wanting to be the number one supplier of online casino games and operators not wanting to be beholden to one large supplier, Carlesund replied:<\/p>\n<blockquote><p>\u201cEvolution wants to be the best company, it\u2019s not arrogant, we want to be humble but (we also) don\u2019t understand why we can\u2019t say that. We want to work with operators and expand the market, so that they see us as a partner\u201d<\/p><\/blockquote>\n<p><strong>Forward looking: <\/strong>Comparatives for the second quarter will provide a tougher challenge due to the \u201cpandemic effects\u201d on the NetEnt business in the prior year period.<\/p>\n<p><strong>Regulation-lite: <\/strong>The geographic splits show growth across each region with the standout revenue increases coming from Asia (\u20ac53.2m compared with \u20ac20.8m in Q1 2020) and the US (\u20ac21.6m compared with \u20ac7.1m in Q1 2020). The addition of NetEnt has marginally improved the percentage of business form regulated markets, now at 40% (vs 38% in Q1 2020).<\/p>\n<p>Europe generated 60% of group revenues during the quarter, with Asia (23%) in third and the US (9%) in third.<\/p>\n<div class=\"captioned-image-container\">\n<figure><a class=\"image-link image2 image2-201-369\" href=\"https:\/\/cdn.substack.com\/image\/fetch\/f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F633573e1-64ce-4c05-9395-bfbefb16d0d7_369x201.png\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/cdn.substack.com\/image\/fetch\/w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fbucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com%2Fpublic%2Fimages%2F633573e1-64ce-4c05-9395-bfbefb16d0d7_369x201.png\" alt=\"\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/bucketeer-e05bbc84-baa3-437e-9518-adb32be77984.s3.amazonaws.com\/public\/images\/633573e1-64ce-4c05-9395-bfbefb16d0d7_369x201.png&quot;,&quot;height&quot;:201,&quot;width&quot;:369,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null}\" \/><\/a><strong>Responding to demand: <\/strong>Carlesund said the group was constantly looking at building new studio capacity to \u201cincrease supply and respond to demand. We\u2019re building studios in Europe and the US to supply current demand, not (to target) a new state. The aim is to build a network of studios, build redundancy and increase reliability and stability.\u201d<\/figure>\n<h3>\u00a0Additional articles available today on Earnings + More:<\/h3>\n<ul>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/27-april-results-evolution-growth\" target=\"_blank\" rel=\"noopener\">Super Group investor presentation<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/27-april-results-evolution-growth\" target=\"_blank\" rel=\"noopener\">XLMedia FY20<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/27-april-results-evolution-growth\" target=\"_blank\" rel=\"noopener\">Gaming Realms FY20<\/a><\/li>\n<li><a href=\"https:\/\/wagersearningsmore.substack.com\/p\/27-april-results-evolution-growth\" target=\"_blank\" rel=\"noopener\">Churchill Downs 1Q21 earnings call<\/a><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Evolution Q121 The top line Revenues soared 105% YoY to \u20ac235.8m (32.8% QoQ rise). EBITDA up 150% to \u20ac160.1m (66.4% QoQ). Live casino (77% mix) accounted for the majority of revenue growth, up 60% YoY; RNG (33% mix) up 6% YoY. Integration with NetEnt completed nine months ahead of schedule. All about the margin: The [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","footnotes":""},"categories":[337,324],"tags":[608,711,769,669,639],"class_list":["post-2015","post","type-post","status-publish","format-standard","hentry","category-analyst-notes","category-news","tag-churchill-downs","tag-evolution","tag-gaming-realms","tag-super-group","tag-xlmedia"],"_links":{"self":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/2015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/comments?post=2015"}],"version-history":[{"count":2,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/2015\/revisions"}],"predecessor-version":[{"id":2018,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/posts\/2015\/revisions\/2018"}],"wp:attachment":[{"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/media?parent=2015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/categories?post=2015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wagers.com\/staging\/4285\/wp-json\/wp\/v2\/tags?post=2015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}