tops forecast as pandemic boosts online casino games
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* Q1 EBITDA 160.1 mln euros vs forecast 144.3 mln euros
* Growth driven by North America, Asia
* Shares rise 6.5% to record high
STOCKHOLM, April 27 (Reuters) - Sweden's Evolution GamingGroup beat expectations with a 150% jump infirst-quarter core earnings as pandemic lockdowns boosted demandfor online casino games, particularly in Asia and the UnitedStates.
The company's shares rose 6.5% to a record high of 1,555Swedish crowns in early Tuesday trading.
Evolution Gaming, which develops and licenses casino games,dominates the market in Europe and its purchase of NetEnt for$2.12 billion last year gave it several top 10 slot titles suchas Starburst and Piggy Riches.
The live casino games business saw operational challengesthat limited the effects of the pick up in demand, but the slotsbusiness had a very strong quarter, Chief Executive MartinCarlesund said in an interview.
Asia and North America continue to be the two main sourcesfor growth for Evolution, with revenue in Asia more thandoubling and up around three times in North America.
Growth prospects remain good in the United States as morestates consider making online gambling legal to boost taxreceipts.
Quarterly earnings before interest, taxes, depreciation, andamortisation (EBITDA) jumped to 160.1 million euros ($193.27million) from 64.1 million a year ago, beating analysts' meanforecast of 144.3 million euros, according to Refinitivestimates.
The EBITDA margin rose to 67.9% from 55.7% a year earlier.
With NetEnt, Evolution's offering has become a must-have andreminiscent of a monopoly, according to research firm Redeye.
Carlesund said the company had achieved its target of 40million euros of cost synergies from the NetEnt deal nine monthsearlier than planned.
Evolution spent another 450 million euros to buyAustralia-based online slot machine developer Big Time Gamingearlier this month.
The company is looking for more acquisitions, Carlesundsaid.
($1 = 0.8284 euros)(Reporting by Supantha Mukherjee in Stockholm. Editing byNiklas Pollard and Mark Potter)
