Evolution's Q3 2024: Record Growth and Global Expansion

Evolution has unveiled remarkable financial outcomes for the third quarter of 2024, showcasing a significant surge in performance and a robust plan for further expansion. The company reported a 27.9% increase in operating revenue, which amounted to €579 million ($626.8 million), marking a notable enhancement from last year. This achievement was accompanied by substantial increments in both net profits and earnings before interest, taxes, depreciation, and amortization (EBITDA), reflecting Evolution’s strategic focus on enlarging its global footprint. For the period, Evolution’s profit surged by an impressive 18.5%, rising from €272.8 million in Q3 2023 to €328.6 million. The EBITDA experienced an even greater climb of 30.3%, reaching €415.3 million, with an EBITDA margin climbing to 71.7% from the previous year's 70.4%. Earnings per share reflected simultaneous growth, ascending to €1.57 from €1.28 a year earlier. Net revenue, excluding operational figures, grew by 14.7% to €519.4 million, while the adjusted EBITDA without other operational revenues climbed 11.6% year-over-year to €355.6 million.

Expansion Efforts and Strategic Acquisitions

Evolution’s audacious expansion strategy was in full force throughout the third quarter. It commenced with an announcement in July about acquiring Galaxy Gaming for $85 million. This strategic move was complemented by securing an essential software supplier license in the Isle of Man, underscoring Evolution's commitment to complying with regulations across varied markets. The company also forged a partnership with the Atlantic Lottery in Canada and inaugurated its first live casino studio in the Czech Republic in October, which represented a significant landmark in broadening its geographical presence. Despite commendable achievements, Evolution encountered hurdles, particularly as it began downsizing operations in Georgia due to union negotiation challenges. Martin Carlesund, the CEO of Evolution Group, remarked on these developments saying, “During the third quarter our operational development has continued at a high pace with very successful launches of new products and the opening of two new live casino studios."

Future Prospects and Studio Expansion Plans

Evolution's success in Q2 2024 laid the foundation for its subsequent growth, hitting over €1 billion in revenues for the first half of the year across all regions. This success emphasizes the strength of its live casino offerings and the diversification of its product portfolio. For the initial nine months of 2024, Evolution reported operating revenue exceeding €1.59 billion, representing a 20.1% increase compared to €1.32 billion from the same period in 2023. The EBITDA for the year to date reached €1.1 billion, a 19% increase, while profits from January to September rose to €866.9 million, marking a 9.5% year-over-year rise. Looking to the future, Carlesund voiced optimism about Evolution’s live casino products, especially following the success of innovative games released this quarter like "Lightning Storm," hailed as the most advanced in their Lightning-series, and "Lightning Dragon Tiger," which have both garnered significant player interest. Confirming continued investments, Carlesund revealed plans for new studio projects in Brazil and the Philippines, stating, “Investment in new studios will continue into 2025. Right now, we are launching new studio projects in Brazil and the Philippines.” These expansions are poised to bolster Evolution’s network of live casinos, designed to cater to its expanding global player base by offering engaging new game formats and enhancing player experiences. Source: 'Evolution posts €579m in Q3 revenue; CEO highlights success of Lightning Storm game', gamblinginsider.com, October 25, 2024. By GamesAndCasino