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Industry News

Evolution Publishes Interim Report for the Third Quarter of 2023

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Evolution has published its interim report for the third quarter of 2023.

Highlights

Third Quarter of 2023

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  • Operating revenues increased by 19.6% to EUR 452.6 million (378.5)
  • EBITDA increased by 22.1% to EUR 318.6 million (261.0), corresponding to a margin of 70.4% (69.0)
  • Profit for the period amounted to EUR 272.8 million (221.3)
  • Earnings per share amounted to EUR 1.28 (1.04)

January-September 2023

  • Operating revenues increased by 26.1% to EUR 1,323.3 million (1049.3)
  • EBITDA increased by 27.6% to EUR 930.5 million (728.9), corresponding to a margin of 70.3% (69.5)
  • Profit for the period amounted to EUR 788.0 million (619.9)
  • Earnings per share amounted to EUR 3.69 (2.91)

CEO Comments:

“In the third quarter, Evolution reports revenue of EUR 452.6 million and EBITDA amounting to EUR 318.6 million, corresponding to almost 20 percent top-line growth and 70.4 percent EBITDA margin. This is a good financial performance and the underlying growth drivers for the business remains solid. During the third quarter we released more games than during any earlier quarter. A strong development that I am pleased with as entertaining games and a flawless player experience are the absolute most important factors for our long-term success.

“Our Live Casino revenue grew to EUR 385.8 million for the quarter and we see a higher demand for our product than what we currently can deliver. That is a measure of the phenomenal traction our games have. However, it also means we are not expanding our studios at the right pace. However, it also means we are not expanding our studios at the right pace. We have faced delays, and in some cases not executed fully, in several of our planned studio projects for this year but even more importantly we need to increase the pace of recruitment both in existing studios as well as to support new studios. We are working hard to get back on track in our existing locations and we will continue to invest in our network of studios and add new locations. We opened a smaller studio in Colombia just after the end of the third quarter. We plan to open one new studio in Europe later this year and 3-4 next year in Europe, North America and LatAm.

“RNG revenues amounted to EUR 66.8 million and declined 1.9 percent compared to the corresponding quarter last year. Despite the step back in year-on-year growth it was a quarter when we made progress in our RNG operations. Our release pace is now where we want it to be and all new games are from the third quarter on OSS (One Stop Shop). We are methodically and systematically moving our RNG business forward. Our earlier communicated goal for RNG growth remains but at the moment we focus on showing step-by-step improvements.

“We are focused on factors that are within our control when explaining our financial result. However, this quarter the impact from external factors such as currency effects are more significant than ever. The strengthening of the Euro against most currencies has affected our top line growth negatively during this year. Players deposit and play in many different currencies with our operators, the resulting GGR is converted to Euro which is the base for our invoicing. In the third quarter we estimate 6-8 percentage points negative headwind on revenue growth from currency effects when comparing revenues to the same quarter last year.

“The group EBITDA margin is 70.4 percent during the third quarter. We maintain our guidance of 68-71 percent EBITDA margin for the year. Coming into the final quarter of the year I do expect us to be in the upper end of that interval even with a full focus on expansion.

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“Our ability to deliver new and exciting player experiences is one of our main competitive advantages and I am pleased to say that we are on track to exceed our plan of more than 100 games released in 2023. In the third quarter we released 28 RNG titles and 8 Live games. We have had a continued strong development of our disco themed Funky Time which launched this spring, adding new dimensions to our popular Game Show portfolio. At the G2E show earlier in October we presented two new releases: Red Door Roulette — an innovative mash-up of Crazy Time and Lightning Roulette — and Video Poker, a Live Casino game offering the ultimate fusion of nostalgia and player-focused modern gaming technology. We also released many new and exciting slots, some of my personal favorites this quarter are The Crypt from Nolimit City and Max Megaways 2 from BTG. As stated, 2023 will be backend loaded in terms of releases both for Live and RNG and I am excited about what the last months of this year will bring from a product perspective.

“North America is a region that we expect to develop over many years as more US states regulate. The online casino market is still in an early stage of development. We continue to see growth for our Live product quarter to quarter in the existing states, while we in the past quarter take a step back in our RNG revenue compared to the second quarter. Together this results in a 9 percent growth in North America compared to same period last year but a slightly lower revenue in the third quarter compared to the second quarter. Asia and Latin America both grow 35 and 39 percent respectively from last year and Europe shows a steady 10 percent increase. The growth compared to third quarter of last year is organic in all regions as the latest acquisitions were included in the group then.

“In summary, the underlying growth drivers remain unchanged. We face a tougher macro climate today than one year ago and we are underserving the market at the moment, but we will continue to invest, optimize recruitment and, as always, push for growth through focus on product innovation. Our financial strength will continue to serve us well as we can continue to invest without interruption and grow. We remain committed to delivering new thrilling experiences to new and existing players and continue to strive to be just a little better every day. I look forward to the final months of the year and onwards into 2024.”

Industry News

NOVOMATIC Showcased an Unforgettable Performance of Innovation at ICE 2025 in Barcelona

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From January 20 to 22, 2025, the Fira Barcelona Gran Via became the global hotspot of the gaming industry as part of ICE 2025. As the largest exhibitor, NOVOMATIC set new standards with an unprecedented product variety, an outstanding booth design and a unique visitor experience that was unmatched at ICE. In addition to NOVOMATIC’s comprehensive 360° portfolio, numerous subsidiaries and technology partners – such as NOVOMATIC Spain, NOVOMATIC Gaming UK, NOVOMATIC Italia, LÖWEN ENTERTAINMENT, APEX and Ainsworth Gaming Technology – showcased their latest products. A dedicated area for visitors from Latin America was a particular highlight this year, underscoring NOVOMATIC’s commitment to addressing regional market needs with tailored solutions.

Brilliance Perfected: The Launch of the DIAMOND X 1.55J QUATTRO

NOVOMATIC’s sophisticated product portfolio has been expanded with the groundbreaking launch of the DIAMOND X 1.55J QUATTRO. This latest edition of the internationally popular DIAMOND X 1.55J impresses with exceptional features that take the gaming experience to an entirely new level. A sleek cabinet design, an innovative glass touch deck and a cutting-edge soundbar deliver a unique player experience and maximum immersion. The new DIAMOND X™ 1.55J QUATTRO was unveiled with an outstanding sign solution that created a sensation at the NOVOMATIC booth. Offered in attractive packages with four or six cabinets featuring the latest gaming content, the monumental signs delivered an audio-visual spectacle that thrilled visitors and operators alike. With this offering, NOVOMATIC once again reinforced its position as the “Diamond of the Industry.” In addition to this, the exclusive cabinets of the V.I.P. X series also attracted attention. The V.I.P. X Royal 1.85, V.I.P. X Dream 2.43/3.43 and V.I.P. X Lounge 2.32 are designed for discerning players and casino operators who are looking to offer their guests a premium gaming atmosphere. Another key attraction this year was, once again, the V.I.P. X Galaxy 2.65, which continues to generate excitement worldwide. Combining high-end comfort with a futuristic design, this luxury cabinet sets new standards in functionality and gameplay, delivering an unparalleled gaming experience.

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Next-Level Gaming: Linked Progressives, Multiple Feature Games, and Game-Mixes

NOVOMATIC captivated audiences at ICE 2025 with remarkable gaming content, premiering several new Linked Progressives and Multiple Feature Games. A standout highlight was XTENSION LINK Evolution, which created a buzz with two enticing new titles – Mighty Squad and Fu Flow. These Multiple Feature Games impress with engaging gameplay and innovative mechanics, delivering an unrivaled gaming experience. Volumes 3 and 4 of the popular XTENSION LINK were also introduced, each featuring 12 thrilling titles packed with engaging features such as Expanding Reels, Golden Spins and the Xpress Feature, ensuring maximum entertainment for players. On the NOVO LINE platform, the new Multiple Feature Game RISING TREASURES made its grand debut, offering five compelling titles packed with attractive features such as Free Games, Xtra Spins and Prize Upgrades. The Impera ProLink enthralled visitors with four new titles, including the legendary Book of Ra ProLink, delivering cutting-edge gameplay with features like Mega Spins, Double Reels and Chain Reaction. The event reached epic proportions with the launch of the EPIC GOLD Jackpot, an exclusive selection of five GOLDEN titles that introduce an additional Progressive Jackpot Level – the EPIC – offering thrilling new winning opportunities. And the NOVOMATIC classic Gaminator is receiving a stunning modern update with the launch of the GAMINATOR X5. This highly customisable mix features a total of 66 game titles across seven packages, offering unequaled flexibility to casino operators by enabling them to tailor the product precisely to the needs of their guests.

Global Excellence: NOVOMATIC Wins Four Prestigious Awards

ICE 2025 was accompanied by several award ceremonies, where NOVOMATIC reaffirmed its leading position in the gaming industry by securing four leading awards. At the European Casino Awards 2025, NOVOMATIC triumphed in three key categories: The V.I.P. X Galaxy 2.65 was honoured as the Best New Innovative Product; The NOVO CASH Casino Master secured the award for Best Cash Handling Product; and the company’s sustainability strategy was recognised with the Sustainability Initiative Award. In addition to this, NOVOMATIC received the highly coveted ICE Landmark Award 2025 in honor of its unwavering commitment to innovation, excellence and leadership in the gaming industry.

The Executive Board of NOVOMATIC AG Group said: “The premiere of the ICE in Barcelona in 2025 was an outstanding success and the perfect start to NOVOMATIC’s 45th anniversary year. The overwhelmingly positive feedback from our customers and partners clearly confirms our position as Europe’s leading gaming technology group with outstanding innovations and cutting-edge products. We are particularly proud of the four internationally renowned awards that recognize our continuous commitment to excellence in this industry. Our special gratitude belongs to our more than 25,000 dedicated employees, whose tireless efforts have made this success possible.”

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Thomas Schmalzer, VP Global Sales and VP Product Management NOVOMATIC AG, said: “ICE 2025 was, for us, one of the greatest and most successful shows ever. Not only did we exhibit at one of the best booths we have ever had, but we were also able to launch one of the largest ranges of products from gaming equipment to fascinating new game titles and jackpot families. This underscores our innovation and technology leadership in the industry. We are excited about rolling out our latest products in markets globally and ICE 2025 confirmed to us that our solutions are perfectly in tune with player preferences and customer demand. We would like to express our sincere gratitude to our customers and partners for their trust and the excellent collaboration.”

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CT Interactive Appoints Todor Botsev as Business Development Manager for EMEA and Asia

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CT Interactive has appointed Todor Botsev as its Business Development Manager for ЕМЕА and Аsia.

With over 16 years of experience in the dynamic and rapidly evolving casino industry, Todor specialises in online and offline business operations. His career has encompassed a variety of roles and responsibilities, including managing online and offline casino operations, optimising gaming platforms and developing strategic business initiatives.

Throughout his career, Todor has gained extensive experience in the development and implementation of new gaming products for online and offline casinos, working with a diverse range of gaming platforms and systems. His expert approach to data analysis and market trends enables him to design and execute innovative strategies for customer acquisition and retention, driving sustainable growth and expanding the customer base.

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Todor’s strong leadership skills allow him to effectively manage teams and projects, with a focus on operational efficiency and staff development. His leadership philosophy is built on collaboration and a commitment to delivering the highest standards of customer service.

With his deep understanding of online casino operations and strategic thinking, Todor is a valuable addition to the CT Interactive team.

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Playtech Executive Chair Brian Mattingley Set to Step Aside

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The chairman of Playtech, the London-listed gambling technology group, is to step down, triggering a search for a successor with a taste for stringent corporate governance challenges.

Egon Zehnder International, the boardroom headhunter, is being appointed to handle the search for Mr Mattingley’s successor, according to a source close to the situation.

A former chairman and chief executive of 888, the London-listed gaming company now known as Evoke, Mr Mattingley was also a founding director of Gala Leisure.

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At Playtech, he has overseen a frenetic period of corporate activity while also finding himself in the eye of a series of storms with shareholders over boardroom pay and wider corporate governance.

The most recent of those came in December when close to a third of investors rebelled over a €100m bonus plan for Mor Weizer, the company’s chief executive, along with other senior executives.

Shareholders give Mr Mattingley credit, however, for helping to navigate the company through a challenging period in the gambling industry, in particular his role last year in securing the sale of Snaitech, its Italian consumer gambling arm, for €2.3bn.

That represented a nearly threefold return on Playtech’s initial investment in the business, triggering total returns to shareholders of up to €1.8bn – a sum almost equivalent to all of the special dividends paid by London-listed companies in 2023.

The sale of Snaitech will transform Playtech into a pure-play business-to-business operation.

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During Mr Mattingley’s three-and-a-half year tenure, shares in the company have risen by about 60%.

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