Evolution Gaming Earnings Pandemic Leads To Boost In Online Games
Evolution Gaming Group has enjoyed an interesting first quarter in 2021. The Swedish company exceeded expectations with more than 150% jump in its earnings in the first quarter of 2021. Analysts believe the major reason for the uptrend has to do with the fact more persons are indoors and as such there has been an increase in the demand for online casino games. The pandemic has led to people particularly in the US and Asia clamor for more online casino games.
On Tuesday, Evolution Gaming Group saw its share rise 6.5% to 1,555 Swedish crowns.
Evolution Gaming develops and licenses casino games. In the last year, the group purchased NetEnt for $2.12 billion last year gave the group major slot titles like Piggy Riches and Starburst. This acquisition has cemented Evolution Gaming as one of the top names in the industry.
According to Martin Carlesund, Chief Executive of Evolution Gaming Group, the first quarter has seen an increase in the demand of slots. Other areas of the industry, like the live casino games, have seen a lot challenges.
North America and Asia are the two main areas for growth for the company, with revenues seeing double and triple growths in Asia and North America respectively.
There are lots of potential in the US as more states are opening to online gambling avenues to help state tax receipts.
Quaterly EBITDA went from 64 million euros last year, to 160 million euros, exceeding analysts initial forecast of 144.3 million euros.
The earnings before interest, taxes, depreciation and amortisation went from 67% to 55% in 12 months.
Thanks to its acquisition of NetEnt, Evolution Gaming has a collection of highly sought after games in the online casino industry.
According to Carlesund, Evolution Gaming attained 40 million euros of cost synergies from the deal with NetEnt, almost a year earlier than anticipated.
Evolution Gaming is still making expansion plans. The Swedish group acquired Australia-based slot machine developer Big Time Gaming for close to 500 million in April, 2021.
The company is making expansion plans, and it is looking for more acquisitions.
