Live casino giant Evolution Gaming is considering opening a brand new studio in Malta next year as it seeks to meet demand in an increasing number of regulated markets.
The company today (Wednesday) released positive Q3 figures which included a 41% year-on-year rise in revenue to €64.3m and operating profit of just over €23m, which was up 27% on the same period in 2017. Total revenues for the nine months to the end of September was up almost 40% at €127m, with operating profit up more than 30% at just over €48m.
Evolution said margin was impacted by a faster than-expected growth in the number of tables, with the company – which provides its live casino products to many of the world’s top operators such as William Hill and Unibet – having approximately 500 tables live at the end of the quarter.
Evolution has seen significant growth around the world over the course of the last 12 months with its Rest of Europe (not including UK and Nordics) and Rest of World segments increasing by around 50% and between 20-25% in terms of GGR each quarter respectively. It is licensed in a number of European markets, including the UK, Denmark, Italy and Spain, as well as Canada and New Jersey.
CEO Martin Carlesund said the company expects “continued high expansion going forward”, with further growth at its Malta base likely next year.
“When we look upon 2019, we turn our focus to Malta where we evaluate the possibilities for further expansion, potentially via a new studio,” Carlesund said.
“All our international teams are located in Malta, and we see that demand for native-language services is increasing as more markets become regulated.”
Carlesund described the opening of Evolution’s New Jersey studio as the operational highlight of the quarter but warned that big returns are not expected immediately.
“The US market remains a long-term project, where New Jersey marks the start of a longer journey,” he said. “The timetable for regulation in additional states is hard to predict; according to reports, Pennsylvania is next during 2019.
“Regardless of the timing, Evolution is now very well positioned to grasp the opportunities that will open up.”
While growth was largely positive, Carlesund warned that profit margin for the full year will be at the lower end of forecasts. The company’s share price was down almost 2% at the end of Wednesday.