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Evolution credits “high demand” as Q1 revenue and profit double

| By Marese O'Hagan
Live casino supplier Evolution has reported sharp year-on-year increases to record highs in both revenue and profit in the first quarter of 2021, the first quarter since its acquisition of NetEnt in December 2020.

Evolution acquired NetEnt after a SEK19.6bn bid for the business in June 2020, and the slot supplier’s figures were included for the first time in both its Q1 2021 figures, and comparative accounts for 2020.

Evolution’s total revenue came €235.8m, more than double what Evolution and NetEnt made in the first quarter of 2020. Live revenue came to €183.6m and random number generator (RNG) revenue totaled at €52.2m

Geographically, Evolution enjoyed an overall rise in revenue in each of its operating regions year-on-year. There was 204.2% rise in North America operating revenue this quarter, while the Nordics followed with a 164.5% increase. Asia came third with a 155.8% rise in revenue.

The United Kingdom’s revenue rose by 116.2%, while the rest of Europe – its largest market – saw 74.1% rgrowth. Revenue in other markets increased by 67.5%.

Evolution explained that the increased revenue and profit, particularly in live casino revenue, stems from increased commission income from existing and, in part, from new customers.

Operating expenses, including personnel expenses, impairment and other operating necessities totaled €94.2m, leaving operating profit of €141.65m. This is an 147.9% increase year-on-year.

Financial expenses of €953,000, and tax bills of €8.7m, brought the final profit total to €132.0m, a 143.6% rise compared to the first quarter of 2020.

“The positive trend from 2020 continues in to the first quarter of 2021 where we see a good momentum both in terms of growth and profitability,” Evolution chief executive Martin Carlesund said.

“We can already see good results from this work in the first quarter, and I believe that we are well-set to continue to capitalise on the growing interest in online casino world-wide.”

Acquisitions are set to continue for Evolution after it entered an agreement to acquire Big Time Gaming for €450m (£389.0m/$534.5m) earlier this month

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