Evolution Sees Mixed Q2 Results Amid Strategic Changes
Despite ongoing regulatory uncertainties in core jurisdictions and other macroeconomic pressures, the company remains confident in its business model.
Live casino giant Evolution reported mixed results for Q2 2024, showing strong growth in its live segment but slower performance in its RNG division. Despite increasing investor uncertainty, CEO Martin Carlesund remained optimistic, pointing out several positive developments expected to lead to long-term gains and secure the company’s leading position.
Stable Growth Across Key Metrics
Evolution achieved total revenues of €508.4 million ($553.52 million) for the quarter, a 15.4% increase from 2023. This growth was mainly driven by the Live Casino segment, which rose 17.8% to €438.1 million ($476.98 million). The RNG segment saw only a slight increase of 1.4% to €70.3 million ($76.54 million). The slower RNG growth may signal underlying issues.
The company’s EBITDA reached €345.8 million ($376.4 million), marking a 10.9% year-over-year increase. However, the profit margin dropped to 52.9% from 59.9% in Q2 2023, resulting in a net profit of €269.1 million ($292.91 million). This led to a 9.3% drop in the company’s stock, reflecting concerns about its momentum.
Significant growth in Asian markets validated Evolution’s investments in these regions, with Asia surpassing Europe as the top-performing region. LatAm and North America showed more modest growth, but the company is optimistic about future returns from ongoing investments in these areas.
Anticipated Expansion to Drive Future Value
CEO Martin Carlesund discussed strategic plans for expansion into new markets such as the Philippines, Brazil, and the Czech Republic. He expressed confidence in the company’s long-term outlook, despite quarterly challenges, and believed that Evolution’s upcoming titles would appeal to gaming enthusiasts globally.
Evolution is continuing to invest in studio expansions and increasing delivery capacity, with plans to launch new titles from studios in Colombia and the Czech Republic by the end of 2024. Although the RNG segment’s performance was slow, Evolution remains committed to investing in it, confident in its potential.
“We will continue to innovate and break new ground, leading the way in providing the games of the future. We are always pushing to be better at what we do, raising the bar for ourselves and our colleagues,” stated Martin Carlesund, Evolution CEO.
Despite operational and market challenges, Evolution showed resilience and potential for sustained success. The company recently announced an offer to acquire Galaxy Gaming, aiming to strengthen its presence in the US market and align it with core markets like Europe and Asia, thereby reinforcing its global leadership position.