Evolution Hits €452.6m in Q3 Revenue with Slower Growth

In the third quarter of this year, Evolution experienced a notable surge in operating revenue, marking a 20% year-on-year increase, reaching €452.6 million ($477.6 million) compared to last year’s €378.5 million.

Breaking it down further, the developer’s live casino division brought in €385.8 million, showing a considerable uptick from the previous year’s €310.4 million. On the other hand, the random number generator (RNG) arm saw a revenue of €66.8 million, a slight decrease of €1.3 million from the previous year, marking its lowest earnings for the year.

Analyzing the developer’s overall operating revenue in comparison to previous years, the graph below illustrates the growth rate of the company. It’s worth noting that the rise from Q3 2022 to Q3 2023 represents the smallest percentage increase in this period, reflecting a stabilization in the company’s performance as it further establishes itself in the market.

Despite having 2% fall in RNG figures, Evolution CEO Martin Carlesund was optimistic:

“RNG revenues amounted to €66.8m and declined 2% compared to the corresponding quarter last year. Despite the step back in year-on-year growth, it was a quarter when we made progress in our RNG operations.”

He added:

“Our live casino revenue grew to €385.8m for the quarter and we see a higher demand for our product than what we currently can deliver. That is a measure of the phenomenal traction our games have.”

Moving on to Evolution’s EBITDA, the company achieved an EBITDA margin of 70%, a 1% increase from Q3 2022’s margin of 69%. The total EBITDA figure for Q3 2023 was reported at €318.6 million, reflecting a 22% annual increase, nearly aligning with the company’s revenue.

Comparing the figures since Q3 2019, the company has consistently reported substantial growth each quarter. From Q3 2019 to Q3 2020, there was an 87% increase, totaling €90.7 million. A year later, in Q3 2021, this figure surged to €193 million, signifying a 113% increase. While Q3 2022 saw a slower rise at 35%, with reported earnings of €261 million.

The graph below showcases Evolution’s EBITDA margin over the past five quarters, highlighting the steady growth and subsequent leveling off in the last three quarters.

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Looking at Evolution’s profit for the period, there was a substantial 23% annual increase, reaching a total of €272.8 million – marking the highest recorded profit for the company in its Q3 season.

When comparing this rise to the figures reported in Q3 since 2019, the 23% growth in Q3 2023, much like the rest of its financials in this quarter, signifies a moderation in the company’s rapid expansion.

The most significant year-on-year surge occurred between Q3 2019 and Q3 2020, with a remarkable 100% increase in profit for the period. This was closely followed by Q3 2021, where it totaled 98%.

Evolution’s performance over the first nine months of the year has also shown a consistent annual increase. The operating revenue for this period reached €1.32 billion, reflecting a 26% rise compared to the first nine months of 2022.

This upward trend is also evident in its EBITDA, which reported a total of €930.5 million – a 28% increase compared to the same period last year. Additionally, the profit for the period saw a significant 27% surge, amounting to €788 million.

The overall report paints a picture of a company that has firmly established itself in the market. While it may not be achieving 100% year-on-year increases anymore, the magnitude of the figures reporting solidifies its status as an industry powerhouse – one that exerts considerable dominance.

Source:

“Evolution records €452.6m in Q3 revenue – but growth slowing; RNG down”, gamblinginsider.com, October 26, 2023.