Live dealer casino technology suppliers Evolution Gaming credited new tables in new markets for its double-digit revenue and profit gains.
Evolution released its Q3 fiscal report card on Wednesday, showing strong double-digit year-on-year growth in revenue (€64.3m, +41%), earnings (€28m, +28%) and profit (€21.2m, +27%) in the three months ending September 30. However, profit margin dipped nearly four points to a still impressive 33%.
The margin shrinkage reflects a “faster-than-expected” growth in Evolution’s number of active tables, which neared 500 by the end of the quarter, up around 100 from the end of 2017, while its full-time payroll grew 44% to 3,970 by the end of the quarter. Total global payroll hit 5,257, a figure that Evolution CEO Martin Carlesund called “a great achievement.”
The quarter saw Evolution launch its first US-based gaming studio – and its tenth studio globally – in New Jersey’s regulated online market. Evolution’s New Jersey client roster already includes 888 Holdings, Hard Rock Atlantic City, Ocean Resort Casino, Resorts Casino Hotel and Rush Street Interactive’s PlaySugarHouse brand.
Carlesund called Evolution’s new Atlantic City studio “the main milestone” of the quarter. Carlesund further claimed that the response from clients and customers had been “positive throughout” and the development of Evolution’s offering has “exceeded our expectations during the initial phase.”
Evolution is viewing the New Jersey launch as “the start of a longer journey” in the US market. Pennsylvania’s intrastate online market is expected to launch early in the new year and Carlesund is confident that Evolution is “very well positioned” to take advantage of future intrastate opportunities as they arise.
This year has also seen Evolution launch new studios in the Republic of Georgia and the Canadian province of British Columbia. The company has tentative plans for a new studio in Malta, where all of Evolution’s international teams are located, at some point next year.
Evolution also plans to launch two new products before the end of the year; a revised random number generator (RNG) suite and Infinite Blackjack, which can accommodate an unlimited volume of players.
The quarter saw Evolution ink deals with Sweden’s gambling and race betting monopolies to supply live casino product when the liberalized Swedish market kicks in on January 1, 2019.