Evolution revenue surges 28% in Q2 despite RNG shortcomings
Live casino giant continues its strong growth with its highest ever EBITDA margin of 70.7%
Evolution has posted a 28.2% year-on-year (YoY) increase in revenue for the Q2 2023, with Europe sitting at the top of the geographical revenue mix.
The live casino powerhouse recorded €441.1m (£381.8m) in worldwide revenue for the three months between April and June, up from €344m in Q2 2022.
Of this figure, live casino represented the majority share of the firm’s revenue, bringing in €371.8m, up 33.5% YoY from €278.5m.
The RNG segment saw slight YoY growth going from €65.5m to €69.3m but is slightly down from the €69.5m recorded in Q1 2023. On a pro-forma basis, RNG revenue fell by 4% YoY.
CEO Martin Carlesund said the group need to “do better financially in the RNG segments”. The supplier snapped up Nolimit City last year in a £287m deal in its hopes to drive that arm of the business.
Carlesund added: “We have earlier communicated that the development towards our goal of double-digit growth will take more time and while not yet growing in line with our targets for RNG, it is worth pointing out that it is a highly profitable business and accretive to group margins.
“With our operational improvements in place I see that we have many opportunities to execute on going forward.”
When breaking revenue down by region, Europe took the lion’s share with €175.2m, up 15.3% YoY, while the Asian division generated revenue of €164.5m, up 48.3%.
The North American segment reported €55.5m, up 20.4% YoY, while the group’s Latin American arm went up a massive 61.3% to €31.3m.
The total revenue share from regulated markets dipped slightly from 43% to 40%.
The supplier also noted a 30.8% YoY increase in EBITDA to €311.7m, corresponding to a record EBITDA margin of 70.7%.
Operating profit grew 31.2% YoY from €214.6m to €281.5m, while total profit amounted to €264.1m.
Speaking on the results, Carlesund said: “During the second quarter of 2023, we continued to deliver good results, with top-line growth of 28.2% to €441.1m and our highest ever EBITDA margin in a quarter. Although a strong financial result, operationally, I feel that we can do more to leverage our execution power to the fullest.
Carlesund went on to discuss the firm’s ambitions for the second half of the year. He commented: “New titles and constantly improving the playing experience in our existing games is an important cornerstone in our ambition to deliver growth. Securing long-term quality, in combination with the fact that we always want to do more and better, this is our mindset and the reason why we can expand our gap to competition also in challenging times.
“We will continue to invest for growth, to try new solutions, sometimes fail, but always strive to be better, every single day. Together with the soon 18,000 people at Evolution, I look forward to the second half of 2023 with great enthusiasm.”