Evolution released its financial results for the third quarter of 2024, showing a 27.9% increase in operating revenue to 579 million euros ($626.8 million), with both profits and EBITDA also rising.
Highlights of Q3 2024
This quarter, the supplier's operating revenue increased, with profits up 18.5% year-over-year from 272.8 million euros last year to 328.6 million euros this year. Additionally, EBITDA grew by 30.3% to 415.3 million euros, with an EBITDA profit margin of 71.7%, up from last year's 70.4%. Finally, earnings per share for Q3 2024 were 1.57 euros, up from 1.28 euros.
Excluding operating revenue, data also showed positive growth, with net income increasing by 14.7% to 519.4 million euros. Adjusted EBITDA, excluding other operating income, also grew by 11.6% year-over-year to 355.6 million euros.
Evolution had a busy start to the second half of the year, announcing at the beginning of the third quarter plans to acquire Galaxy Gaming for $85 million. Subsequently, the company obtained a software supplier license in the Isle of Man and recently established a partnership with Canada's Atlantic Lottery. In early October, the supplier also opened its first live casino studio in the Czech Republic.
It is worth noting that due to ongoing issues with national union negotiations, Evolution is currently rapidly scaling down its operations in Georgia.
Martin Carlesund, CEO of Evolution Group, commented on the company's development in the third quarter: "In the third quarter, our operational development continued to grow rapidly, successfully launching new products and opening two new live casino studios.
"We are continuing to build Evolution step by step to capitalize on the huge opportunities that online casinos bring in the coming years. However, this quarter also saw short-term challenges and two external factors that negatively impacted this quarter."
Year to Date (January to September)
As for the performance so far this year, these latest figures mean that Evolution's annual operating revenue has already exceeded 1.59 billion euros, up 20.1% from 1.32 billion euros in the same period in 2023. EBITDA also broke through the 1 billion euro mark, growing by 19% to 1.1 billion euros. Finally, the total profit for the period from January to September 2024 was 866.9 million euros, up 9.5% year-over-year.
Following a positive outcome in the first quarter with growth achieved in all geographic areas, the supplier's annual revenue broke through the $1 billion mark in the second quarter.
Outlook
As part of the quarterly review, Carlesund also commented on future prospects, stating: "Despite the impact of the aforementioned events, our live casino products continued to perform well in the third quarter, growing by 16% year-over-year. I am pleased to see players responding well to new games such as 'Lightning Storm' and 'Lightning Dragon Tiger,' both of which are great additions to our proprietary Lightning series of games.
"Lightning Storm is our most ambitious and advanced game show to date—combining technical originality with innovative game design to create an excellent gaming experience. This quarter, we launched the first batch of tables in our new studio in Colombia, and in early October, we opened the first batch of tables in our Czech Republic studio. Investment in new studios will continue into 2025. Currently, we are initiating new studio projects in Brazil and the Philippines."
