Evolution Gaming: Interim Report January-March 2016

First quarter of 2016 (Q1 2015)

  · Revenues increased by 59% to EUR 24.8 million (15.6)
  · Profit for the period amounted to EUR 7.6 million (1.4)
  · Earnings per share amounted to EUR 0.21 (0.04)
  · Adjusted EBITDA increased by 67% to EUR 10.3 million (6.2), with a margin of
42% (39)
  · Mobile penetration amounted to 34% (20)

Events during the quarter

  · New and extended platform partnerships
  · Strong demand for dedicated tables and environments
  · Acquisition of studio property in Riga completed

CEO Jens von Bahr's comments:

The strong growth of 2015 has continued into 2016 and in the first quarter
Evolution’s revenues rose by 59 percent compared with the same quarter last
year. EBITDA amounted to EUR 10.3 million, corresponding to a margin of 42%.
Mobile growth also continued, with mobile penetration amounting to 34% for the
quarter.

To date, the year has been characterised by a high level of activity. Among
other things, we have entered into a new platform partnership with Aspire
Global, and also extended our previous deal with BetConstruct. Platform
partnerships are good sales channels and through them we gain a continuous
stream of smaller operators who start using our services, and who, over time,
can potentially grow into large customers. During the quarter, last year’s
strategic agreement with Microgaming also began to produce results, with Betway
having now integrated our services fully, including a number of dedicated
tables. Additional customers can be expected through this agreement over the
year, with 32Red being one in the starting blocks.

We also continue to expand existing customers’ offerings. During the quarter,
among others, William Hill went live with a new Vegas environment in Riga, while
Betsson went live with new dedicated environments in both Riga and Malta. Other
customers who have increased their number of dedicated tables are Unibet, Mr.
Green, 888 and GVC. The very strong demand for dedicated offerings requires
space and we are continuously expanding our studio space in both Riga and Malta.
We have also expanded in Belgium with a dedicated environment for Napoleon
Games, built on-premise at the customer’s facility in Aalst.

On the product side, we have entered an agreement with Scientific Games for an
exclusive live version of Ultimate Texas Hold’em to be launched later this year.
We are also preparing the launch of Double Ball Roulette through the strategic
partnership with Games Marketing. Live Baccarat Squeeze, which was launched at
the end of last year, is progressing very well, particularly in the VIP segment
where many players have greatly increased the amount of game time. Live
Caribbean Stud Poker, which was launched in November last year, is also starting
to gain in popularity and many operators integrated the game during the quarter.

In addition to the exciting development of the game portfolio, during the
quarter, we also began to roll out our new Live Lobby, which will be another
manifestation of our ongoing mission to further distance ourselves from the
competition. This involves much more than a cosmetic upgrade, among other
things, by making it easier for end users to choose their favourite table and
dealer. The new function, in which you see live snapshots even before having
joined a particular table, enhances credibility and, at the same time, builds
confidence in the product.

On the whole, I view the continued development of both the market and Evolution
with the same confidence as previously. Although Live Casino remains a small
part of the total online gaming market, with its social interaction and
customisable content, it has what it takes to continuing growing at a high pace
over the coming years. At the same time, we will continue working according to
our clear strategy to support both existing customers to develop their live
offerings, while also benefitting from future growth areas such as land-based
casinos.
For further information, please contact:
Adrian Westman, IR Contact
+46 735 090 400, awestman@evolutiongaming.com

The information in this report is such that Evolution Gaming Group AB (publ) is
required to publish pursuant to the Securities Market Act and/or the Financial
Instruments Trading Act. The information was submitted for publication on 27
April 2016 at 8:00 a.m. (CET).
Evolution Gaming Group AB (publ) (”Evolution”) develops, produces, markets and
licenses fully-integrated B2B Live Casino solutions to gaming operators. Since
its inception in 2006, Evolution has developed into a leading B2B provider in
the European market with 70 operators among its customers. The group currently
employs 2,100 people, most of whom are located in Latvia and Malta. The parent
company is based in Sweden and listed on the Nasdaq First North Premier exchange
under the ticker EVO. Avanza Bank is the company’s certified adviser. Visit
www.evolutiongaming.com for more information.