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Evolution operating revenues top €500m over start of 2024

| By Kyle Goldsmith
Live dealer giant Evolution reported operating revenues of over €500.0m (£429.9m/$534.3m) in Q1, up 16.7% year-on-year as it looks to meet the increasing demand.

Evolution released its Q1 report on Wednesday (24 April). Operating revenues reached €501.5m for the quarter. This was up 5.5% on Q4 and ahead of the €429.6m it accumulated in the same quarter last year.

EBITDA also hiked to €345.8m with a margin of 69.0%. Evolution’s EBITDA for Q1 was 15.2% higher than in the first quarter of last year. EBITDA was also 2.6% up on Q4’s total of €337.0m.

Evolution’s total profit for Q1 stood at €269.2m, while earnings per share were €1.27. Both profit and earnings per share were down from last quarter, when it accumulated €282.9m in profit and €1.31 in earnings per share.

Evolution chief executive Martin Carlesund lauded the company’s performance in Q1. He also outlined that the business was well-placed to continue on its upwards growth trajectory.

“Evolution is a growing, strong, profitable, all-equity funded company,” Carlesund said. “In recent years our solid financial position has enabled us to remain focused on growth through periods of geopolitical uncertainty, a pandemic and rapid increases in interest rates.

“We will continue to invest and expand our global operations and come to work hungry, ambitious and excited for what more we can achieve.”

Live casino driving Evolution growth

In the report, Evolution noted 19.8% year-on-year growth in its live casino sector, with an additional €25.7m in revenue when compared to Q4.

However, Evolution also outlined that there’s still a lot of work to be done to fully capitalise on its strong place in the market and meet the demand for its products.

That need to scale up was a common theme in Evolution’s 2023. Carlesund previously stated the company was looking to expand with new games studios across the globe. Evolution is hoping to launch at least four studios this year, on top of a facility in Bulgaria that opened in Q4.

On top of casino growth, Evolution also saw its random number generator (RNG) figures rise. RNG revenues for Q1 reached €70.1m, up on Q4’s total of €69.8m. Carlesund highlighted that Evolution was looking to boost that growth by incorporating artificial intelligence (AI) into its infrastructure, while also increasing its game releases.

Evolution launched over 20 new RNG titles in Q1 and the company is looking to further increase its offering over the year.

“During the period we have continued to increase our table capacity to meet the market demand and I am pleased to say that the progress made in Q4 has carried over into this year,” Carlesund said.

“All together we have a much improved balance between supply and demand today compared to last year.”

Global performance

Evolution reported growth across all regions, with “stable” increases in Europe and strong growth in Asia.

Earlier this year, Evolution announced a new partnership with Fanatics in North America, while also expanding its relationship with Caesars Digital. Part of the Caesars deal includes a new studio in New Jersey.

In the exciting market of LatAm, Evolution reported strong year-on-year growth, although it noted that it was awaiting the regulation in Brazil, expected later this year.

Looking to the future of Evolution

After a strong Q1, Evolution outlined that its full-year guidance remained at an EBITDA margin of 69%-71%.

Evolution’s key objective for 2024 is to increase its delivery capacity so that it can meet the demand, with strong initial focus on expansion margins to “pave the way” for further future revenue growth.

To aid that process, Evolution is set to open a studio in Colombia, as well as a new studio in the Czech Republic during 2024.

During the investors call following the release of Evolution’s Q1 report, Carlesund highlighted the importance of expansion.

“It’s the second quarter in a row where we’re ramping up and accelerating and we will continue to do that,” Carlesund said. “We’re going to build the right amount of tables to get the maximum out of the market in 2024.”

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