Evolution plans investment despite macro-economic challenges

Evolution experienced year-on-year growth across both its live dealer and RNG segments in the three months to 31 March, with the business overcoming higher expenses and ongoing external challenges.

Chief executive Martin Carlesund said he is keen for Evolution to pursue further growth in the coming months, explaining that he is “convinced” the business can perform better in the RNG segment.

As such, Carlesund said, plans are in place to continue to invest and recruit new staff to help it achieve its long-term goals.

“We have high ambitions, and we are acting on a growing market,” Carlesund said. “We are a profitable, strong, all-equity financed company making money at present and we are focused on growing. 

“Hence, we will continue to invest, recruit and push for growth even though we currently face a tougher macro-economic climate. During the first quarter we have continued to invest in many of our existing studios and we continue to plan to start work on one or two additional studios during this year.”

Q1

Looking at the results in Q1, revenue amounted to €429.6m (£380.8m/$475.0m), up 31.5% from €326.8m in the same period last year.

Breaking this down, live dealer revenue reached €360.1m, a year-on-year rise of 36.1%, due to increased commission income from existing customers and, to a certain extent, from new customers. 

RNG revenue also climbed by 11.6% to €69.5m as Evolution reported an ongoing rise in demand for online casino, partly as a result of its continuous launch of new games and variations on traditional games. The group plans to launch more than 100 new games in 2023.

In terms of its geographical performance, Europe remained Evolution’s largest market with €173.7m in revenue during the quarter. Operations in Asia drew €154.0m in revenue, while North America revenue hit €57.3m, Latin America generated €30.0m and other markets produced €14.6m.

Turning to spending, and operating expenses were 32.1% higher at €158.1m, while after also accounting for €1.4m in financial costs, this left a pre-tax profit of €270.1m, up 27.8% year-on-year.

Evolution paid €18.9m in tax, meaning net profit for the quarter was €251.2m, an increase of 27.1% on 2022. In addition, EBITDA climbed 30.7% to €300.2m for the period.

“As stated, many times before – we always strive to do a little bit better every day, with the ambition to continuously improve our world leading playing experience and further develop our operational excellence,” Carlesund said.