Supplier of Live Casino and other solutions for the international gambling industry Evolution Gaming Group AB (publ) announced both its quarterly financial results for the three months ended December 31, 2015 and the year as a whole. Revenue for the fourth quarter of 2015 amounted to €22.4 million, up 62% from the €13.8 million posted for the same period a year ago. Full-year revenue increased 55% to reach €75.2 million.
Commenting on the considerable revenue increase during the fourth quarter of 2015, Evolution Gaming said that it derived primarily from a growth in commission income from the company’s existing customers and partly from its new customers. Proceeds from dedicated Live Casino tables also accounted for a significant portion of the overall quarterly income as more and more customers demanded Live Casino environments over the reported period.
Evolution Gaming reported operating expenses of €14.9 million for the three months ended December 31, 2015. In comparison, the amount of €9.6 million was posted for the same period of 2014. The company noted that the increase was mainly due to the higher personnel costs related to the launch of new tables and to the recruitment of new personnel in key business areas.
Quarterly operating profit amounted to €7.5 million, representing an 81% increase as compared to the figure reported for the same three months of 2014. Adjusted EBITDA for the period totaled €9.3 million, up 68% year-on-year.
During the fourth quarter of 2015, Evolution Gaming launched three new gaming products – Baccarat Squeeze, Dual Play Roulette, and Caribbean Stud Poker. It also signed strategic partnership agreements with Casumo, Gamesys, and SBTech.
As mentioned above, Evolution Gaming reported a significant growth in its full-year revenue, as well. It amounted to €75.2 million as compared to €48.5 million posted for the year ended December 31, 2014. The supplier pointed out that the positive revenue development was mainly due to the rise in commission income from both existing and new customers.
Proceeds from dedicated Live Casino tables also contributed to the overall revenue growth as the number of customers seeking customized Live Casino environments grew significantly over the twelve months ended December 31, 2015.
Operating expenses for 2015 amounted to €50.1 million, up 44% year-on-year. The company said that the increase was mainly due to the addition of new tables, which resulted in higher personnel costs.
Adjusted operating profit for the period increased 82% to reach €25.1 million. Adjusted EBITDA totaled €31 million, representing a growth of 76% as compared to the €17.7 million posted for the previous calendar year.
Commenting on its market performance in 2015, Evolution Gaming pointed to one particularly important factor that contributed to its growth and is expected to further contribute to its future development. The company said that interest in Live Casino offering has grown significantly in Europe and that its main goal is to “grow faster than the total European Live Casino market.” Evolution Gaming is currently among the leading suppliers of that particular offering.
