Gaming Giant Evolution Sees Growth Despite Challenges
Evolution has reported a “solid” performance for Q2 2024, despite a record payout in its Crazy Time game impacting growth. CEO Martin Carlesund assured investors of the company’s stability and future prospects.
Financial Highlights
The company recorded operating revenues of €508.4 million, marking a 15.3% increase from the same period in 2023. EBITDA rose by 10.9% to €345.8 million, although the EBITDA margin fell to 68% from 70.7% in Q2 2023. Nonetheless, Evolution maintained its full-year guidance at a 69-71% margin.
Impact of Crazy Time
Carlesund noted that the unprecedented win in the Crazy Time casino game affected the quarter’s financials, though he emphasized its long-term benefits for the business. He stated, “Large player wins are part of the game and positive for our games’ attractiveness to players, but it does affect us through lower revenue share in the period.”
Regional Performance
The CEO also highlighted slower growth across most regions in Q2, attributing this to “natural variations in our industry.” Despite this, he remains optimistic about the company’s future, citing strong market demand for Evolution’s products.
Expansion into New Markets
Carlesund expressed confidence in the company’s investment in new markets, including the Philippines, Brazil, and the Czech Republic, predicting significant long-term returns. He also noted ongoing growth in Europe and Asia, with North America expanding steadily and Latin America performing well despite regulatory delays in Brazil.
New Product Development
Evolution is set to launch over 100 new titles this year, with live casino revenue up by 18% year-on-year in Q2 2024. While the RNG segment saw modest growth of 2%, Carlesund expects new game launches to boost performance. He highlighted the successful release of Balloon Race and upcoming major launches like Lightning Storm, slated for Q3.
Strategic Acquisitions
The company continues to strengthen its position through strategic acquisitions, including the planned $85 million purchase of Galaxy Gaming. This acquisition is expected to enhance Evolution’s presence in the US market and expand its game portfolio.
Shareholder Value
Carlesund concluded by discussing Evolution’s capital allocation framework, which includes a €400 million share buy-back program aimed at enhancing shareholder value. He emphasized the company’s commitment to delivering superior returns, innovative products, and a strong future despite increased regulatory challenges.
Looking Ahead
With a robust growth strategy and a focus on new market development, Evolution remains well-positioned to maintain its market-leading status in the global gaming industry.
