Evolution Gaming Year-end report 2014

Full year 2014 (2013)

• Revenues increased by 25% to EUR 48.5 million (38.8)
• Operating profit increased by 66% to EUR 13.1 million (7.9)
• The operating margin amounted to 27% (20)
• Profit for the period amounted to EUR 12.1 million (7.2)
• Earnings per share amounted to EUR 0.35 (0.20)

Fourth quarter of 2014 (Q4 2013)

• Revenues increased by 33% to EUR 13.8 million (10.4)
• Operating profit increased by 227% to EUR 4.2 million (1.3)
• The operating margin amounted to 30% (12)
• Profit for the period amounted to EUR 3.8 million (1.1)
• Earnings per share amounted to EUR 0.11 (0.03)

Events during the fourth quarter of 2014

• Strong profit growth
• Agreements with PokerStars and win2day
• Launch of Blackjack Bet Behind
• Immersive Roulette voted Game of the Year

CEO's comments

The fourth quarter was the pinnacle of Evolution’s best year to date. Operating profit amounted to EUR 4.2 million and the operating margin was 30 percent. For the full-year, the corresponding outcomes were EUR 13.1 million and 27 percent. The strong trend was mainly explained by a sharp increase in commission revenues from both existing and new customers. The factors that contributed most included increased mobile gaming and the success of our new games.

During the final quarter of the year, Evolution signed agreements with two new Tier-1 customers, PokerStars and win2day. PokerStars is the world’s largest poker operator and will, through two dedicated environments in Evolution’s production studios in Riga and Malta, offer end-users Live Roulette, Blackjack, Casino Hold’em and Baccarat. Austrian win2day will have a dedicated environment for Live Roulette with Austrian dealers at the production studio in Malta.

Another important event during the quarter was the launch of Blackjack Bet Behind. To date, Blackjack has been the only core game in Evolution’s portfolio where the number of simultaneous players has been limited. Now, however, with Bet Behind, full scalability is offered with players being able to bet on players already sitting at the table. Apart from the obvious benefit to operators, this innovation also gives end-users a heightened gaming experience with additional opportunities for participation. It is also a good introduction for new end-users who first want to observe how a round is played before starting to play themselves.

During 2014, Immersive Roulette, Evolution’s new twist of Live Roulette in HD quality, has received considerable attention and quickly become popular among the end-users – especially on mobile. Moreover, the operators voted Immersive Game of the Year at the EGR Operator Awards in November. Earlier in the year, we were awarded Live Casino Provider of the Year for the fifth time out of five possible.

Overall, 2014 was a very good year for Evolution and we enter 2015 with the objective of continuing to strengthen our leading position in the live casino segment. As a natural step in our development, we also intend to list the company on Nasdaq First North Premier in the first quarter of the year.

Jens von Bahr, CEO