Evolution Gaming Financial Forecast

Evolution Gaming

The gaming industry is booming. More and more casino sites are coming online as regulated markets expand. The top players in the industry from a game design standpoint keep raising the bar with a heightened gameplay experience. With everything moving in the right direction, the question becomes should investors jump on the gaming bandwagon?

What Is Evolution Gamings Financial Prediction?

A recent post by Steven Chen for www.seekingalpha.com took a closer look at Evolution Gaming from an investment standpoint. The overall synopsis was highly positive based on:

  1. Solid Financial Results
  2. Market Leadership
  3. Reasonable Share Price

Evolution Gaming is a European gaming company founded in 2006. Its primary business at that time was business-to-business live casino applications. The Live Casino segment of the real money online gambling industry offers huge upside potential.

Offering Live Dealer Table Games Online

The idea of playing casino table games online with the use of a live dealer has wide-scale appeal. Furthermore, this is the closest thing to casino gambling action at a land-based venue. Advanced technology along with sophisticated online gambling software applications have accelerated live casino growth.

Still leading the charge, Evolution Gaming is now serving more than 150 casino operators. This includes some of the largest European land-based and online casino sites. The company employs close to 4,000 people with most working out of Malta and Latvia. The parent company is based in Sweden and listed on the Stockholm Stock Exchange as EVO. US-based investors have access through the ticker EVVTY. US duel shares are listed through EVGGF.

Primary operations cover the development, production and licensing of gaming solutions for business customers. Many include gaming operators who deliver these products to end-users in land-based or online casino applications.

The driving force behind Evolution’s revenue picture is commission fees and fixed fees for its products and services. Commissions are calculated in terms of gaming profits. This is the difference between gambling revenue and player payouts. It primarily pertains to its live casino offerings. The company also charges monthly fixed fees for customized product offerings to casino operators.

The competitive edge that Evolution Gaming brings to the table is a superior product line. Competitive pressure for other gaming companies in the realm of live casino products will continue to increase. However, the company’s position as the market leader is an important point of difference. Also, take a look at the latest news about expanding their games to Pennsylvania right here.

Evolution’s take on the competitive environment is positive. There is a strong commitment to maintain and possibly widen the gap moving forward. By its own admission, there are “clear possibilities to continue to increase the gap in the coming years. Supported by the launch of several new games and studios.”

Financial highlights from the second quarter 2019 include:

  1. A 70% increase in operating profit
  2. 70% increase in earnings per share
  3. A 50% increase in operating revenue

These are just a few of the financial results that paint a very bright future for Evolution Gaming. The company is well-positioned for continued growth in an expanding market. It also has the ability to maintain a competitive edge behind an excellent management team.