Evolution posted a 69 percent increase in revenue from Asia in the second quarter, which now accounts for just under a third of total group sales.
The Sweden-listed company reported total revenue in the quarter of EUR343.9 million ($350.4 million), up 34 percent from the same period last year. Asia revenue was EUR110.9 million, edging ahead of Europe as the main contributor.
Despite the strong performance, CEO Martin Carlesund noted that the pace of growth in Evolution’s Asian and its Other Markets segments had slowed from earlier in the year.
Profit for the perfio was EUR200.9 million.
Live casino, which is particularly popular in Asia, makes up the majority of group revenue. It rose 37 percent from the same period last year to EUR278.5 million and compared with EUR264.5 million in the first quarter.
The group said the positive revenue in live casino mainly derived from increased commission income from existing customers and, to a certain extent from new customers.
|Financially, I regard the second quarter as good but not great and not quite reflecting the success we have had operationally. When evaluating our financial performance in the second quarter I also factor in the exceptional development we had during Q1 and Q2 last year which effects the year-on-year percentage growth rate in Q2,” Calselund said in the earnings report.
During the quarter, Evolution opened new live dealer studios in Madrid, Connecticut and Yerevan, as well as the launch of new live games in West Virginia. It also began construction of an additional studio in New Jersey.
Analysts at RP Financial noted that Evolution had achieved impressive returns, despite being a challenging quarter.
Revenue from the UK was broadly flat compared with last year and down 7 percent from the prior quarter.
“Affordability constraints are becoming increasingly broadly felt, although the U.K. remains range bound rather than showing an alarming trend yet,” they said.