Evolution gaming, a live dealer software provider, has posted a year-on-year increase in revenue and profit for 2019, as it was augmented by increased commission earnings from both existing and new customers.
Total revenue for entire of 2019 amounted to €365.8m, up 49% from €245.4m in 2018. Apart from increased commission income, the company said additional customers unveiling or extending their customised live casino environments also contributed to the revenue for the year.
When it comes to geographical performance, European markets were by some distance Evolution’s main region of income, with total revenue of around €184.3m for last year. The UK was second with €49.9m and Asia followed closely behind at €49.6m.
Evolution Gaming also recorded growth within its North American arms, with revenue coming in at €22m for 2019. Nordics revenue was on €24.3m and other regions totalled €35.5m.
On the expenses side, total operating expenses stood at €208.3m, a 33.6% rise from €155.9m in the previous year. The company pointed to higher spending on staff for this increase, with personnel costs rising from €97.7m to €126.4m.
Depreciation, amortisation and impairment costs also increased by 40.1% to €25.5m. Miscellaneous operating expenses shot 40.7% to €56.4m.
Nevertheless, such was the impact of revenue growth for the year that more operating costs did not hinder Evolution from recording an increase in profit, with operating profit climbing 76% year-on-year to €157.5m.
Profit before tax leaped 76.2% from €89.3m to €157.3m, and after tax returns of €7.5m, the profit hit €149.7m, 79.3% higher than 2018. Moreover, earnings before interest, tax, depreciation and armotisation (EBITDA) saw a 70% rise to €182.9m for 2019.
Chief Executive Martin Carlesund said:
“I am proud of what we have achieved in 2019, which has been an outstanding year from both a financial and operational perspective.
“I am very impressed with what our employees achieve every day – we are now approximately 8,000 employees working together with our eternal mission; to increase the gap to the competitors by offering the market’s best solutions. 2020 has started well and I look forward to another exciting year.”
Carlesund also praised Evolution’s performance in the 4th quarter, a time when revenue shot 51% year-on-year to €106.0m. Profit for the quarter was additionally up 83% to €46.8m, while EBITDA climbed 77% to €55.8m.
“At the end of the fourth quarter, Evolution had more than 700 tables serving over 200 customers,” he said. “During the quarter, we further strengthened our customer portfolio, including an agreement with Flutter Entertainment and its brands Paddy Power and Betfair.
“Our presence in the United States was also strengthened in the quarter through agreements with new operators in Pennsylvania and the process to build a studio in Pennsylvania is ongoing.
“We see good opportunities for continued positive development in the US. In the quarter we have made additional investments in the studio in New Jersey to expand its capacity, our game portfolio and to meet the demand.”