Evolution has announced impressive financial results for Q3 2024, revealing a 27.9% increase in operating revenue over the previous year. Reaching €579 million ($626.8 million), the company also achieved significant gains in both net profits and EBITDA, aligning with its current focus on global expansion.
In this quarter, Evolution’s profit jumped by 18.5%, increasing from €272.8 million in Q3 2023 to €328.6 million. EBITDA rose by an even larger margin, up 30.3% to reach €415.3 million, resulting in an EBITDA margin of 71.7%, surpassing last year's 70.4%. The earnings per share also climbed to €1.57 from €1.28 the previous year, further showcasing the company's growth trajectory.
Notably, net revenue excluding operating figures rose 14.7%, totaling €519.4 million, while adjusted EBITDA without other operating revenues increased by 11.6% year-over-year, reaching €355.6 million.
Evolution’s expansion strategy has been in full swing throughout the quarter. Starting in July, the company announced an $85 million acquisition of Galaxy Gaming. This was followed by obtaining a critical software supplier license in the Isle of Man, emphasizing its devotion to regulatory compliance in diverse markets. Evolution also collaborated with Atlantic Lottery in Canada, and in October, it launched its first live casino studio in the Czech Republic, marking a significant milestone in the company's geographical reach.
Despite these successes, the company has faced challenges. Evolution is in the process of scaling down its operations in Georgia due to ongoing issues with union negotiations. Addressing these developments, Evolution Group CEO Martin Carlesund remarked, “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."
For the first nine months of 2024, Evolution’s operating revenue has surpassed €1.59 billion, representing a 20.1% increase from €1.32 billion at the same point in 2023. EBITDA for the year so far has reached €1.1 billion, reflecting a 19% increase, while profits from January through September have totaled €866.9 million, up 9.5% year-over-year.
Evolution’s Q2 2024 had already set the stage for this growth, with revenues exceeding €1 billion for the first half of the year across all regions, underscoring the strength of its live casino offerings and product diversification.
Looking forward, Carlesund expressed optimism about Evolution’s live casino offerings, particularly given the success of innovative games introduced this quarter. “Lightning Storm,” the most advanced addition to the company's Lightning-series, has been met with strong player interest, as have new releases like "Lightning Dragon Tiger."
Carlesund also confirmed the company’s ongoing investments in infrastructure, with new studios planned for launch in Brazil and the Philippines. He stated, “Investment in new studios will continue into 2025. Right now, we are launching new studio projects in Brazil and the Philippines.” These expansions will add to Evolution’s network of live casino studios, aiming to support its growing global player base with engaging new game formats and enhanced user experiences.
Source:
''Evolution posts €579m in Q3 revenue; CEO highlights success of Lightning Storm game'', gamblinginsider.com, October 25, 2024.