February 25th, 2016
Evolution Gaming recently published its year-end report for 2015, and it has revealed record results in key areas. The casino software group has generated growth by increasing its focus on the development of live dealer games, and securing land-based casino deals in order to expand its presence in a new market.
Q4 accounted for 30% of the entire year's revenue – a success that was aided by the launch of three new live games; Baccarat Squeeze, Caribbean Stud Poker and Dual Play Roulatte. Evolution Gaming can now offer players live dealer games in six different core varieties, including Roulette, Blackjack, Baccarat, Casino Hold’em, Three-Card Poker and Caribbean Stud Poker.
Mobile compatibility has also proved to be valuable for Evolution Gaming. The year-end report revealed to investors that mobile revenue had increased by a third from Q3 to Q4. By the end of 2015, mobile games generated 32% of all revenue, which shows that increasing numbers of players are enjoying the gaming group's content on their smartphones and tablets.
Evolution Gaming had other positive news to report from Q4, including new software deals with Casumo, Gamesys and SBTech, though it was also quick to point out that Q4’s financial success was mostly driven by existing customers such as William Hill and Genting.
Evolution Gaming managed to increase in revenue from €13.8 million (£10.7 million) in Q4 2014 to €22.4 million (£17.48 million) in Q4 2015, representing a sizeable rise. The group also announced a huge 82% increase in profit from €3.8 million (£2.97 million) in Q4 2014 to €6.9 million (£5.39 million) in Q4 2015.
For the entire year of 2015, Evolution Gaming reported an impressive 55% increase in revenue. And this latest achievement comes after the group managed to grow from €48.5 million in 2014 to €75.2 million in 2015.
Evolution Gaming Chief Executive Jens von Bahr explained that the rise in live casino profitability has been driven by,
“a significantly increased interest in live casino from land-based casinos [towards] the latter part of 2015 and the beginning of 2016”.
The group ran dedicated live casino studios in Latvia and Malta before establishing operations inside land-based casinos in Belgium and Spain. And, according to von Bahr, Evolution Gaming is poised for continued growth in the market:
“The land-based segment is an exciting growth area in the coming years”.
Evolution Gaming already provides services to land-based casinos such Casino Campione, Casino Dragonara and Genting, and this line-up is set to be joined by new gaming operators Aspire Global and Napoleon Games, who both signed deals with Evolution Gaming in early February.
Evolution Gaming invested €50.1 million in operating expenses to cover 2015’s growth, and the group is committed to further expansion in 2016. In fact, von Bahr stated in his CEO notes that the group’s target is to “grow faster than the total European live casino market”.
Making deals with both online and land-based operators has opened up significant potential for Evolution Gaming, and 2016’s Q1 results will give an early indication as to how effectively the strategy is performing.