Evolution Closes 2024 with €533.8M in Revenue and Sets Big Goals for 2025

Strong Q4 Performance Despite Challenges

The company’s Live Casino division continued to be its biggest revenue driver, generating €459.4 million, up 13.3% year-over-year. Meanwhile, the RNG segment contributed €74.4 million, a 6.6% increase.

Profitability also remained high:

• EBITDA jumped 35% to €455 million.
• Adjusted EBITDA (excluding one-time operational income) rose 7.9% to €363.6 million.
• Net profit for the quarter surged to €377.1 million, a 33.3% increase year-over-year.
• Earnings per share grew by 38.6% to €1.83.

However, Evolution’s adjusted EBITDA margin dropped from 70.9% to 68.1%, largely due to higher costs and strategic investments.

Labor Strikes, Cyberattacks, and Regulatory Scrutiny

While Evolution closed the year on a high note, it had to navigate several obstacles.

One of the biggest disruptions came from a worker strike at its Georgia studio, which started in July 2024. Employees protested low wages, poor conditions, and management practices, leading to reduced studio capacity. At its worst, the facility operated at 60% efficiency, forcing Evolution to shift production elsewhere.

Although over 300 new gaming tables were added globally, net growth was only 100 tables due to setbacks in Georgia. Ultimately, the company laid off 1,000 employees in the region but has since stabilized operations.

In Asia, cyberattacks targeting Evolution’s video distribution system disrupted services and led to flat revenue growth in the region.

CEO Martin Carlesund acknowledged the seriousness of the situation, stating: “Cybercriminals use advanced technology to intercept our video feed, manipulate it, and redistribute it without authorization, which leads to loss of revenue.”

Meanwhile, in the UK, the Gambling Commission launched a review of Evolution’s license, following the discovery of its games on unlicensed platforms.

This announcement caused a 10% drop in Evolution’s stock price in December 2024. Analysts at Deutsche Bank lowered the company’s rating, warning that operators may diversify away from Evolution to reduce risk.

Despite the scrutiny, Carlesund remains optimistic, stating: “We are working with the UK Gambling Commission to resolve this review. Humbly, I think it’s going well.”

Expansion, New Studios, and a €500M Stock Buyback

Evolution has big plans for 2025, with new studios, product innovations, and financial initiatives in the pipeline. The company is focused on:

• Expanding into new markets, with upcoming studios in Brazil and the Philippines.
• Investing in regulated markets, even if it means a slightly higher cost structure.
• Launching new game titles, including fresh mechanics and expanded global offerings.

To maintain investor confidence, Evolution’s board approved a €500 million stock buyback program and proposed a €2.80 per share dividend.

The company expects EBITDA margins to range between 66-68%, reflecting higher costs related to security, compliance, and expansion. However, Evolution remains committed to profitability and long-term growth.