Evolution Q2 Financial Results: “Solid But Not Fully Reflecting Its Operational Performance”
Evolution CEO Martin Carlesund admitted that although Evolution’s financial results in Q2 were solid, they do not fully reflect how things are going within the company. Compared to Q1 2024 Evolution revenue rose by 1,4% to €508.4m while EBITDA stalls at €345.8m.
Q2 Slowdown
Evolution has had a rather average quarter with a slight increase in revenue and stable EBITDA compared to the period from January to March this year. However, the Q2 numbers look a bit better when viewed on a year-over-year basis. Compared to Q2 2023, Evolution’s revenue increased by 15.2%, while EBITDA grew by 10.9%.
Despite the slowdown in Q2, Evolution CEO Martin Carlesund remains rather optimistic. “This is part of the natural variations in our industry. With that said, there are of course things we can do to improve as has always been our focus when faced with these periods in the past. The underlying market drivers and demand for our market-leading products remains very strong,” said Carlesund.
The company recently agreed to acquire Galaxy Gaming for $85 million to strengthen its position in the U.S. market. In the second quarter of 2024, Evolution’s U.S. revenue increased by 8.5% compared to Q2 2023, reaching €60.2 million, but experienced a 3% decline compared to Q1 2024.
“Our presence in North America expands, offering more successful game types in each state,” Carlesund asserts, noting that in the past quarter, Evolution launched live games in Delaware for the first time.
Live Dealer Games Remain the Main Revenue Driver
Evolution’s core markets remain Europe and Asia, with the Asian market becoming increasingly profitable for the company quarter by quarter. Revenue in Asia grew by 1.6%, surpassing the €200 million mark for the first time in history, while revenue from Europe remained relatively stable, with a slight increase of €300,000.
While Evolution’s Live Dealer games are growing at a great pace, the RNG segment is stumbling, recording just over €1 million growth compared to Q2 2023. In contrast, the Live segment saw a 17.8% increase year-over-year, driving the company’s overall revenue.
Despite Live Dealer games remaining the core segment of Evolution’s business, the company is addressing issues in the RNG sector. “We continue to make incremental improvements to our RNG business by adding new games as well as new functionality to OSS,” concludes Carlesund.
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