Evolution, a B2B solution provider for casino operators, has reported notable growth in both revenue and profitability first half of 2024, which it indicated reflected its ongoing expansion and strategic initiatives.
For the second quarter of 2024, Evolution’s operating revenues jumped by 15.3 percent to EUR 508.4 million ($554.2 million), compared to EUR 441.1 million ($481.0 million) in the same period last year.
The company’s EBITDA also saw a robust increase of 10.9 percent, reaching EUR 345.8 million ($377.1 million), up from EUR 311.7 million ($339.7 million).
Despite a slight decrease in the EBITDA margin to 68.0 percent from 70.7 percent, the profit for the period rose to EUR 269.1 million ($293.5 million) from EUR 264.1 million ($288.1 million), with earnings per share improving to EUR 1.28 ($1.40) from EUR 1.24 ($1.35).
1H24 Performance
For the first half of 2024, Evolution’s operating revenues grew by 16.0 percent to EUR 1,009.9 million ($1,100.8 million), up from EUR 870.6 million ($948.9 million) in the first half of 2023.
EBITDA increased by 13.0 percent to EUR 691.6 million ($754.1 million), compared to EUR 611.9 million ($667.0 million) previously, maintaining a margin of 68.5 percent versus 70.3 percent.
The profit for the period was EUR 538.3 million ($587.2 million), up from EUR 515.2 million ($561.6 million), and earnings per share were EUR 2.55 ($2.78), up from EUR 2.41 ($2.63).
Martin Carlesund, CEO of Evolution, expressed satisfaction with the company’s progress and financial performance.
“It has been a very active second quarter at Evolution, and I am happy with the progress we have made on several of our initiatives,” Carlesund stated, highlighting the company’s efforts to introduce its offerings to new markets, including the Philippines, Brazil, and the Czech Republic.
At the end of 2023, Evolution partnered with Filipino online gaming platform InPlay.ph, to integrate its suite of live casino games into this Philippines platform.
Carlesund acknowledged that the quarter’s financial results, while solid, did not fully reflect the company’s operational performance due to factors such as the largest payout ever in online casino history on Evolution’s Crazy Time game. He emphasized the importance of large player wins for the game’s attractiveness but noted their impact on revenue share.
Market expansion and product development
Revenue from Live Casino increased by 18 percent year-on-year, with Evolution focusing on expanding its studio network and delivery capacity. The company plans to launch new state-of-the-art studios in Colombia and the Czech Republic in 2024.
Additionally, Evolution saw successful product releases, including the Balloon Race game and Lightning-versions of popular SicBo and Dragon Tiger games.
Evolution added it continued to strengthen its market position through strategic acquisitions, such as the announced offer for Galaxy Gaming. This acquisition aims to accelerate Evolution’s presence in the US market and enhance its portfolio with Galaxy’s diverse range of games.
The company also communicated its capital allocation framework, committing to distribute 100 percent of excess net cash flow after investments to shareholders. This includes an annual dividend of 50 percent of net profits and a share buy-back program of up to EUR 400 million ($436.0 million).
