Revenue surpasses €2.00 billon at Evolution in 2024

For the first time in its history, Evolution reported annual revenue exceeding €2.00 billion (£1.67 billion/$2.08 billion) during its 2024 financial year, marking a significant milestone in the company’s operational success.

For the fiscal year ending December 31, 2024, the company’s operating revenue reached €2.21 billion, reflecting a robust year-over-year growth of 23.1%. In its comprehensive earnings report released on January 30, Evolution detailed its full-year financial performance, highlighting its continued expansion in both the live casino and random number generator (RNG) sectors.

Notably, the live casino segment remains Evolution’s primary revenue stream, showcasing considerable growth alongside the RNG segment. While overall spending has increased compared to previous years, the surge in revenue has positively impacted the company’s net profit as well.

“Throughout the past year, Evolution has cemented its status as the leading global provider and innovator of online casino solutions,” stated CEO Martin Carlesund. “Our commitment to continuous innovation and an unrivaled product portfolio is pivotal for our future success, enabling us to offer players an engaging and seamless gaming experience.”

Evolution’s Growth Amidst Challenges

Despite its strong financial performance, Evolution faced several challenges throughout 2024. Carlesund noted issues such as sabotage at its studio in Georgia, which commenced in July, as well as cyber-attacks in the Asian market and escalated tax rates in specific jurisdictions.

Additionally, the company concluded 2024 with the announcement of a license review by the UK Gambling Commission, which found that Evolution’s games were being offered to unlicensed operators in Britain. The company is fully cooperating with the regulatory investigation.

While Carlesund did not mention the license review directly in his post-results commentary, he emphasized the complexities arising from a “constantly evolving” regulatory environment. He indicated that Evolution is proactively adapting to these regulatory changes.

“An increasing number of nations are adopting national regulations for online casinos,” he articulated. “We interpret this trend positively, viewing it as a long-term growth catalyst that will eventually attract new users and clarify market access for B2C operators.”

As a B2B gaming provider, Evolution holds licenses across multiple jurisdictions and is implementing strategic measures to ensure compliance with rapidly changing regulations, maintaining the integrity of its game offerings within regulated markets.

In reviewing market diversification, Q4 saw a 9% year-over-year growth in European revenues. However, analysis from Regulus Partners suggests that Evolution may be experiencing a loss in overall market share.

Continued Momentum in Live Casino Innovation

Live casino operations accounted for over 80% of Evolution’s total revenue, generating £1.78 billion—a 16.6% increase from the previous year. This growth was significantly aided by an expanded table games portfolio, which now exceeds 1,700 offerings—over 100 more than in 2023. Despite expectations for increased capacity, operations at the Georgia studio were hindered by ongoing staff strikes, which impacted table availability.

In October, the company reported that its Georgia studio was functioning at just 60% capacity due to the union action involving approximately 550 employees.

On the other hand, the RNG segment, comprising brands such as NetEnt, Red Tiger, Big Time Gaming, and NoLimit City, saw a modest 4.4% revenue increase to €287.4 million. Although RNG remains the largest vertical within the online casino space, it currently lags behind the live casino segment in revenue generation.

Evolution’s RNG division has faced numerous headwinds in recent years. However, a comprehensive turnaround strategy was launched in 2024, focusing on increasing game releases and enhancing gameplay features. Regulus Partners noted that while promising new titles are on the horizon, current performance indicates only a stabilizing effect rather than a robust recovery.

Additionally, the company reported €151.1 million in other operating revenue, stemming from earn-out liabilities related to mergers and acquisitions. These acquisitions include noteworthy brands such as Livespins and Arcadia Gaming Solutions, along with previous purchases like Big Time Gaming and Nolimit City.

As for potential M&A activity, Evolution is on track to finalize its acquisition of Galaxy Gaming by mid-2025, further solidifying its market position.

Evolution Achieves Net Profit of €1.24 Billion

Total operating expenses for the year surged by 21.2% to €794.6 million, primarily driven by increased personnel costs associated with new table launches and studio expansions.

This resulted in an operating profit of €1.42 billion, reflecting a year-over-year increase of 24.2%. After accounting for financial expenses, Evolution reported a pre-tax profit of €1.44 billion, marking a 25.2% growth.

With tax liabilities amounting to €194.9 million, the company’s net profit reached €1.24 billion, a 16.2% increase. Furthermore, EBITDA advanced by 23.2% to €1.56 billion, underscoring operational efficacy.

Q4 Performance Analysis

In its full-year results, Evolution also highlighted its performance during Q4. Revenue surged by 31.5% to €625.3 million, with €459.4 million stemming from the live casino segment and €74.4 million from RNG.

Operating profit for the fourth quarter climbed 38.0%, while pre-tax profit soared by 40.4% to €425.3 million. Tax liabilities reached €48.2 million, culminating in a net profit of €377.1 million for Q4—a 32.2% increase. Additionally, Q4 EBITDA experienced a remarkable 35.0% year-over-year jump, reaching €455.0 million.

“Through dedication, hard work, and professionalism, our team has positioned Evolution for robust future growth,” concluded Carlesund. “As we move into 2025, we will relentlessly pursue improvements to make Evolution an even better organization every day.”