How Evolution Gaming Is Making Its Mark in the Online Casino Industry
Online casinos are constantly growing and Evolution Gaming is making its mark on the industry. By 2021, it expects to have over 1,000 live tables, an increase of more than 300 tables from the previous year. The company also plans to open a studio in Connecticut in 2022 due to the rapid growth of online casinos in the U.S.
Evolution Gaming's acquisitions
As one of the largest game developers in the online casino industry, Evolution Gaming has made a series of acquisitions to grow its business. The company's strategy is to become the world's leading provider of digital casino games and is making smart moves to achieve that goal. The company started out as a small studio in Riga, Latvia, and has since added studios in several other countries.
In its most recent acquisition, Evolution has acquired DigiWheel, a developer of high definition spinning gaming wheels. The acquisition is an all-cash deal, with a EUR1 million up-front consideration and an earn-out payment based on EBITDA over three years. The company expects to close the transaction in late 2021 or early 2022.
Evolution Gaming has acquired several companies in the last several years. Most recently, it has acquired Big Time Gaming, which developed online slot games like Extra Chilli and Bonanza. This acquisition has increased the company's revenues and profits by over thirty million euros, and will provide it with exposure to the overall growth in the Live Casino market.
Evolution Gaming has also acquired Nolimit City, a developer of unique slots. The acquisition is valued at EUR340 million and includes cash and earn-outs based on Nolimit City's EBITDA. It is believed that the deal will contribute to the company's EPS in 2022.
In addition to Big Time Gaming, Evolution Gaming has also acquired Red Tiger Gaming and NetEnt. The company's revenue increased by more than 105% in the first half of the financial year in 2021. This latest acquisition comes just months after Evolution Gaming bought its Swedish peer NetEnt for $2 billion. A total of EUR450 million was paid upfront, with the remaining sum payable in 2023 and 2024.
With their long history in the iGaming industry, Evolution Gaming has become a market leader. With their latest acquisitions, they have proven that they are dedicated to offering players the best experience possible.
Evolution Gaming's game portfolio
The game portfolio of Evolution Gaming is extensive and consists of online casino classics, award-winning live game shows, and superior First Person 3D animation of many popular games. It also features hundreds of slot machines, including NetEnt's Starburst, Red Tiger's Cash Volt, and Gonzo's Quest Megaways. Evolution has won several awards for its software and game portfolio.
The company has also acquired two gaming companies in recent years: Ezugi and Red Tiger. These two acquisitions have helped Evolution expand its game portfolio and make it more appealing to players and operators alike. Evolution's game portfolio includes slots from NetEnt, Red Tiger, and Big Time Gaming. All of the companies were previously part of NetEnt.
In addition to their popular slot games, Evolution Gaming also has an extensive game portfolio of table games. These games can be played on desktop or mobile devices. The company has supplied live casinos to more than 100 operators worldwide and continues to grow as a leader in the industry. Its games are also known for their intuitiveness and interactivity.
Whether you're looking for a mobile casino experience or a traditional casino, Evolution Gaming is the provider for you. Its complete game portfolio is available on both PCs and mobile devices, without compromising on quality. In 2006, the company revolutionized the European online gambling industry by launching live dealer games. Its success quickly gained international recognition.
Since the company's founding, the company has expanded to several countries in the world, and its software is now being offered on several popular gaming platforms. The company is headquartered in Sweden, but has also expanded its reach by establishing studios in North America and Tbilisi, Georgia. Moreover, the company recently entered the market of online casinos in the US and Canada.
A new live dealer game was launched by Evolution Gaming in January, and the company recently announced a content partnership with Maxim88 online casino. The collaboration will enable the two companies to provide live casino gaming solutions. In the future, Evolution Gaming will expand its game portfolio, bringing more games to the table gaming market.
Its profitability
Evolution Gaming is a B2B online casino services provider. It reported Q2 operating revenues of EUR 344 million ($350 million), up 34.4% from the same quarter a year ago. Its EBITDA rose 36.4%, resulting in a 69.3% margin. It continues to grow its operations in Asia and North America. During the third quarter, the company saw triple-digit growth in North America.
Profitability is crucial to the long-term viability of Evolution Gaming. Without profit, the company is likely to generate negative long-term returns. This profitability progress indicator helps investors understand Evolution Gaming's profitability trend over time. An accelerating trend indicates that profits are increasing, whereas a decreasing trend indicates that operating efficiency is declining.
Evolution's profitability is due in part to its broad range of games. It has six studios in Europe, and recently began expanding into North America, opening studios in Pennsylvania and New Jersey. In order to operate legally in the United States, live casino operators must have tables in every state. By expanding to the United States, Evolution will have the advantage of scale when competing for contracts in these markets.
The company has a wide range of products, including online casino live games. It works with top-tier casinos to provide premium products for players worldwide. It is currently the leader in live games. Its business model has been characterized by rapid expansion and acquisitions over the last three years. Its innovative software and excellent infrastructure should help it maintain its dominance over the live casino industry for many years to come.
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Growth in new geographies will drive Evo's profitability over the next several years. The company has recently expanded into Michigan and Pennsylvania, and it expects its North American revenues to increase by 226% CAGR by 2020.
Its revenue growth
The company has long expressed its intention to deliver double-digit growth in its RNG business, but it hasn't set a timeline. Evolution recently acquired the controversial slot developer Nolimit City for EUR340 million, which should be completed by Q3 of 2019. The acquisition marks an important step in Evolution's mission to become the leading provider of casino games around the world.
The company reports that its revenue in the second quarter of 2018 increased 69 percent year over year. The Asian segment now accounts for just under a third of total revenue for the group, putting it ahead of Europe as the leading contributor. However, the company's CEO Martin Carlesund noted that the rate of growth in the Asian segment was slightly lower than in earlier quarters. Despite this, the company still posted a profit of EUR200.9 million in the second quarter.
In addition to generating revenue from live dealer gaming, Evolution Gaming also develops casino solutions for gaming operators, including land-based, mobile, and television. In addition, the company also licenses its table and software to various online casinos, earning a take rate of about 10 percent from each customer. As such, each time a casino player wagers on one of Evolution Gaming games, the company receives $10 in revenue. Furthermore, it does not have to fund the payouts for the customers.
Furthermore, the company's growth trajectory is fueled by demand in newly regulated markets. It has recently entered Pennsylvania and Michigan, which are expected to drive revenue growth of 226% by 2020. Moreover, the company's profitability has allowed it to invest heavily in product development and growth. In the coming years, it will continue to expand its presence in the market through new expansions.
In addition to live casino software, Evolution Gaming has also developed an RNG casino platform. With this platform, gaming operators can create interactive environments for players to enjoy a real-life casino experience. This platform has been used by many online casinos and has consistently generated top-level profit margins.