Evolution – What does the future hold?

Evolution – What does the future hold?

08 December 2021

Founded in 2006, Evolution AB has grown to become one of the leading actors within the European gambling industry. Operating within the internet services sector, Evolution offers B2B solutions for gambling operators across Europe and the United States. By licensing live casino and slot solutions to gaming operators, Evolution enables users to stream live casino events and to place betting decisions through their smartphone, computer, or other digital device. Evolution’s mission for the future is to maintain and strengthen their position as the world’s number one Live Casino provider.

Expansion and acquisition

Since inception, the Evolution story has been characterized by innovation and expansion. When founded in 2006, Evolution changed the European live dealer platform. Six years later, in 2012, Evolution launched mobile gaming. In 2013, Evolution, through the opening of the 100th live table at the Riga Studios became Europe’s largest single-site casino operator. In the following years Evolution was to expand into Malta, Belgium, Estonia, and the Netherlands. Another landmark was reached in 2018, when Evolution launched its first major expansion outside of Europe, through its first live casino in the United States and its production hub in Tbilisi, Georgia. In 2020, Evolution completed the acquisition of Net Entertainment, a leading casino operator in the Nordics. This year, evolution celebrated its 15th anniversary, and with the US market still in its infancy, there may still be opportunity for growth.

Interim report

Evolution’s latest filing (28 October 2021) did not disappoint investors. The global demand for live casino games remained strong and earnings came in above market estimates. EBITDA was reported at EUR 192.9 million, which can be compared to EUR 90.7 million a year ago, beating the analyst consensus of EUR 191.6 million.

Risks and opportunities

Operating in the online casino segment, Evolution is probably more susceptible to regulatory changes than companies operating in other industries. Today there still remain many jurisdictions that do not allow casino providers to operate. This presents the company and investors with both risks and opportunities. The enforcement of stricter regulatory frameworks could adversely affect Evolution’s growth expectations. On the other hand, new regulations and the opening up of new jurisdictions would allow Evolution to expand into new markets and thus enable greater earnings potential for the company.

Through Vontobel’s new Bull & Bear-certificates and Mini Futures, investors are presented with an opportunity to get long or short exposure to Evolution with leverage, depending on their individual conviction. As a result of the leverage feature, the risk of losses is also higher than in products without leverage.

Stock overview

Evolution AB stock is volatile. Following allegations of irregularities, it recently lost significantly in value. It is currently trading at 1004,6 (08.12.2021). The stock reached its yearly high of 1672,0 (30.04.2021) and yearly low of 750,32 (08.12.2020). 6 Bloomberg analysts currently place the stock on BUY, 3 on HOLD and 0 analysts on SELL.


Important legal information

Important notice

This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the trading products (securities) mentioned herein, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms. The base prospectus and final terms constitute the solely binding sales documents for the securities and are available under the product links. It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand. This information includes or relates to figures of past performance. Past performance is not a reliable indicator of future performance.
30/09/2022 14:58:58


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