Key points:
- Evolution’s Q3 revenue, profit and EBITDA have all increased year-on-year
- These latest figures see year-so-far revenue figures rise above $1.5bn
- The supplier is in a phase of geographical expansion, with EBITDA for the year so far reaching $1.1bn
Evolution has released its financial results for Q3 2024, displaying a 27.9% increase in operating revenue year-over-year to €579m ($626.8m), alongside increases in both profits and EBITDA.
Q3 2024 highlights
The supplier’s increase in operating revenue for the period is paired with a profit increase of 18.5% year-on-year, up from €272.8m last Q3 to €328.6m this year. Further, EBITDA figures increased by 30.3% to €415.3m – subsequently leading to an EBITDA margin of 71.7%, compared to last year’s margin of 70.4%. Finally, earnings per share for Q3 2024 amounted to €1.57 – up from €1.28.
Figures excluding operating revenue also saw positive inclines, with net revenue rising by 14.7% to €519.4m. Adjusted EBITDA excluding other operating revenues also increased 11.6% year-on-year to €355.6m.
It has been a busy start to the second half of the year for Evolution, which began the third quarter with the announcement of plans to acquire Galaxy Gaming in an $85m takeover. After then going on to secure an operational software supplier licence in the Isle of Man, the company has more recently partnered with Atlantic Lottery in Canada. At the beginning of October, the supplier also opened its first Czech Republic live casino studio.
Good to know: Evolution is currently rapidly downsizing its Georgian operations after continuous issues with union negotiations in the nation
Commenting on the company’s Q3 development, Evolution Group CEO Martin Carlesund said: “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.
“We are step-by-step continuing to build Evolution to capitalize on the great opportunity that online casino constitutes in the years to come. However, the quarter also presented near-term challenges and two exogeneous factors that have had a negative impact on the quarter.”
The year so far (Jan-Sept)
Regarding results from the year so far, these latest figures mean Evolution’s yearly operating revenue figures to date now top €1.59bn – 20.1% higher than the €1.32bn recorded by this time in 2023. EBITDA figures also exceed the billion mark, increasing by 19% year-on-year to hit €1.1bn. Finally, profit for the period of January-September 2024 totals €866.9m, a yearly increase of 9.5%.
After positive results in Q1, which indicated growth across all geographical regions, the supplier’s Q2 saw revenue surpass the 1 billion mark for the year.
Looking ahead
As part of his statement reflecting on the quarter, Carlesund also commented on the future outlook, stating: “In the third quarter our live casino offering is continuing to show strong performance, although it is impacted by the events mentioned above. Growth is 16% year-on-year. I am happy to see how players are taking on new games like Lightning Storm and Lightning Dragon Tiger, both great additions to our home-grown Lightning-series of games.
“Lightning Storm is our most ambitious and advanced Game Show to date – technical ingenuity and innovative game design come together to create a fantastic playing experience. During the quarter we launched the first tables in our new studio in Colombia and in early October we opened the first tables in the Czech Republic studio. Investment in new studios will continue into 2025. Right now, we are launching new studio projects in Brazil and the Philippines.”
