Evolution Reports €2 Billion Revenue Milestone in 2024

In 2024, Evolution achieved a historic financial milestone, generating over €2 billion in annual revenue for the first time. The company's operating revenue hit €2.21 billion, reflecting a 23.1% increase from the previous year, despite facing various operational and regulatory challenges. This remarkable achievement underscores the robustness of its business model and strategic direction. Furthermore, net profit reached €1.24 billion, buoyed by the strong performance of its core live casino and random number generator (RNG) segments.

Martin Carlesund, the CEO of Evolution, attributed this success to the company's ongoing innovation and market expansion, which have solidified its position as a leading force in the online casino gaming sector. "During the past year, Evolution has strengthened its position as the world’s leading provider and innovator of online casino games,” Carlesund stated. "We continue to innovate and develop our world-leading product portfolio."

Challenges and Strategic Growth Amid Expansion

In spite of its flourishing financial results, Evolution faced substantial challenges throughout 2024, impacting operations in significant markets.

Disruptions arose at its Georgia studio, where ongoing labor strikes curtailed table capacity to 60%, affecting the live casino sector's revenue forecasts. The industrial action involved about 550 employees, causing delays in expanding table offerings.

Additionally, the company's video distribution network in Asia was subjected to cyberattacks, hindering revenue accrual from the region amid its market expansion efforts.

Moreover, the UK Gambling Commission initiated a review of Evolution's license after discovering that its games were offered by unlicensed operators within the UK. Evolution has expressed a commitment to fully cooperate with the investigation. Carlesund acknowledged these issues, emphasizing Evolution's adaptability in the face of a changing regulatory landscape: "An increasing number of countries introduce a national regulation for online casino. We view this development positively and consider it a long-term driver of growth for the industry."

Live Casino Growth and Future Outlook

The live casino division continued to be a key revenue driver for Evolution, contributing over €1.78 billion, representing a 16.6% increase from the previous year. The number of active tables increased to 1,700, despite the Georgia studio strike hindering further expansion.

Conversely, RNG-based gaming experienced modest revenue growth of 4.4%, totaling €287.4 million. Evolution aims to invigorate this segment by enhancing game releases and integrating new gameplay features.

The company also expanded through mergers and acquisitions, adding €151.1 million to its revenue from these activities. Noteworthy acquisitions include Livespins and Arcadia Gaming Solutions, complementing the integration of Big Time Gaming and NoLimit City into its portfolio.

Evolution plans to finalize its acquisition of Galaxy Gaming by mid-2025, further reinforcing its market leadership. Despite rising operational expenses, Evolution managed to achieve an operating profit of €1.42 billion, pre-tax profit of €1.44 billion, and EBITDA of €1.56 billion. In Q4 alone, revenue grew by 31.5% to €625.3 million, and EBITDA increased by 35% to €455 million.

Looking forward to 2025, Evolution intends to expand its live casino operations to new regulated markets and establish additional studios, including projects in Brazil and the Philippines. The company is also poised to repurchase up to €500 million in shares, underscoring confidence in its enduring profitability. According to Carlesund, "With great determination, hard work, and professionalism, our employees have brought Evolution to an excellent position for future growth. We will relentlessly continue to strive to make Evolution a bit better every day also during 2025."

Analysts recognized strong growth in Evolution’s live casino sector but voiced concerns regarding the RNG division's sluggish performance. Regulus Partners commented on the RNG segment's underwhelming contribution to revenue, while analysts raised potential risks from the UK Gambling Commission investigation and challenges within Asian markets. Despite these concerns, Evolution remains debt-free, with robust cash flow, and is well-positioned for sustained profitability in 2025.

Source: Evolution Records Over €2 Billion in 2024 Revenue as Live Casino Thrives, lcb.org, January 31, 2025.

By GamesAndCasino