Evolution posts 34% YoY revenue rise for Q2 2022 as Asia becomes largest segment
Live casino firm continues to grow with EBITDA and profit rises as just 43% of revenue derived from regulated markets
Evolution has posted a 34% year-on-year (YoY) increase in Q2 revenue as its Asian operations continue to go from strength to strength.
The live casino giant recorded €344m in revenue for the period, up from the €256.7m posted in Q2 2021.
Of this total revenue, the firm’s live casino segment represented the lion’s share, coming in at €278.5m, with its RNG operations returning €65.5m.
These figures represent a substantial growth compared to Q2 2021, with live casino revenue up 36.7% from €203.7m and RNG rising 23.6% from €53m.
Breaking the group’s revenue down by geographic region, Asia surged ahead of Evolution’s non-UK and Nordics European segment for the first time, returning €110.9m, rising from €65.7m in Q2 2021.
Evolution’s non-UK and Nordics European division posted €110m while its North American operations reported €46.1m in revenue, representing YoY growth of 5.8% and 69.5%, respectively.
Revenue from the UK amounted to €20.3m, with Nordics revenue coming in at €21.5m, with the remaining €35.1m coming from other regions.
The total revenue share from regulated markets for Evolution rose slightly from 40% to 43%.
Elsewhere, the live casino giant recorded a 36.4% increase in EBITDA from €174.7m to €238.2m, with a corresponding margin rising from 68% to 69.3%.
Operating profit grew 37.7% from €155.9m to €214.6m, while total profit for the period amounted to €200.9m.
Touching on the period, CEO Martin Carlesund said Q2 was “good but not great” and external factors meant the success in the group’s operations weren’t truly reflected.
He said: “When evaluating our financial performance in the second quarter, I factor in the exceptional development we had during Q1 and Q2 last year which effects the year-on-year percentage growth rate in Q2.
“We all know that the world is a challenging place right now and it’s hard not to mention the ongoing horrible war and also the effects of the pandemic. Our fast expansion is affected by the current cost inflation especially in categories like energy, logistics, semiconductor products and wages.
“We are happy but not content with the margin of 69.3% in the quarter and we are likely to continue to see margins vary during the year but expect to stay within the guided range for 2022,” he added.
Touching on sustained growth in Asia and North America, Carlesund added: “Both our Asia and other regions, while growing very nicely, are at a marginally lower pace in this quarter compared to earlier this year.
“We continued to expand our studios in North America, however most of the increased capacity was added toward the end of the quarter. European markets overall showed single digit growth in the quarter, with a step faster pace in the Nordics.”
Reflecting on the results, Regulus Partners noted: “Evolution has clearly shifted its growth strategy from a product which takes share to a portfolio which finds opportunities. Insofar as this is still achieving impressive returns even in a challenging quarter, the strategy is clearly working. However, rapid growth in Asia is pulling in an opposite regulatory risk direction than North America. Equally, with live maturing in most markets, pressure is now on to turn RNG around.”
Despite the financial growth YoY, Evolution’s share price was down 4.38% to SEK910.60 at the time of writing.