Evolution growth story continues as revenue rises 17% in Q1
Stockholm-listed supplier reports EBITDA increased to €300m while operating profit jumps 14.8% YoY to €311.6m
Evolution Gaming has seen revenue rise 16.7% year-on-year (YoY) to €501.5m during Q1 2024, with CEO Martin Carlesund praising the continued momentum from 2023 for the business.
EBITDA rose 15.2% YoY from €300.2m to €345.8m, while operating profit between January to March 2024 jumped 14.8% YoY to €311.6m.
EBITDA margin in Q1 came in at 69%, a slight decrease from the 69.9% reported during Q1 2023, while operating margin for the quarter was 62.1%, also down from 63.2% the year prior.
Breaking down revenue by vertical, live casino jumped to €431.3m in Q1 2024 from €360.1m which was attributed to “increased commission income from existing customers” as well as new customers.
RNG revenue increased from €69.5m to €70.1m, showing growth for the third consecutive quarter, albeit not at the scale of live casino.
Geographically, Asia took top spot with revenue sitting at €197.6m, with Europe close behind at €191m.
Growth in the US continued for the second quarter in a row, standing at €62.1m while the share of group revenue from regulated markets dropped from 40% to 39%.
Out of total group revenue of €501.5m, just €195.4m comes from regulated markets.
Operating expenses increased to €189.8m, up from €158.1m, due to higher costs for personnel on the back of the launch of new tables.
Carlesund commented on the increased implementation of AI into the firm’s systems to test “efficiency, analysis or automation” while discussing future growth plans.
He said: “RNG revenues improved sequentially both in comparison to the previous quarter as well as year on year, delivering a revenue of €70.1m in the quarter.
“We continue to incrementally improve our RNG business both in the pace of game releases and in tools surrounding the games. We are adding and injecting AI into our system infrastructure and also in our way of operating where we see that it can contribute to efficiency, analysis or automation.
“The long-term trends remain, with stable organic growth in Europe and very robust growth in Asia. In North America, we added a new client, Fanatics, and expanded our strategic relationship with Caesars Digital, which includes an additional studio in New Jersey.”
The CEO also confirmed the opening of a Colombia studio is progressing well while a new studio in Czechia is due to open before the end of 2024.
Despite positive results, the supplier giant saw its share price drop 2.85% to SEK1,295.50.