Evolution's quarterly earnings jump on casino games boost
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STOCKHOLM, July 21 (Reuters) - Sweden's Evolution ABreported a 115% jump in second-quarter core earnings,beating market estimates, as the pandemic boosted demand foronline casino games, particularly in the United States.
The company, which makes online slot machines and roulettegames, has seen more customers turning to online games and theUnited States becoming a growth market as more states considermaking online gambling legal to boost tax receipts.
Evolution, which has more than 500 customers including 888Casino and Betsson, bought Swedish rivalNetEnt for $2.12 billion last year, handing it popular slotgames such as Starburst and Piggy Riches.
Apart from buying companies, the company has also beenlaunching new studios. Its studio in Michigan - the third in theUnited States - is approved and ready for launch, and thecompany plans to add two new delivery hubs in Europe this year.
However, the pandemic has slowed down its expansion plans.
"The overall situation is improving but it is still veryhard and the pandemic is not over," CEO Martin Carlesund said ina statement.
Evolution's quarterly EBITDA rose to 174.7 million euros($205.69 million) beating the mean forecast of 172.3 millioneuros, according to Refinitiv estimates, and its correspondingmargin rose to 68%.
"Our EBITDA margin reached a new high level during the firstquarter this year, a level that we maintained this quarter and Iexpect to maintain also during the rest of the year," Carlesundsaid.
($1 = 0.8493 euros)(Reporting by Supantha Mukherjee in Stockholm; editing byNiklas Pollard)
