
Evolution wrapped up 2024 with a landmark financial achievement, surpassing €2 billion in annual revenue for the first time. The company’s operating revenue reached €2.21 billion, reflecting a 23.1% year-on-year increase despite operational and regulatory hurdles. The net profit also climbed to €1.24 billion, supported by strong performance in its core live casino and random number generator (RNG) divisions.
CEO Martin Carlesund credited Evolution’s continued innovation and market expansion for these results, reinforcing the company's position as a global leader in online casino gaming.
“During the past year, Evolution has strengthened its position as the world’s leading provider and innovator of online casino games,” Carlesund stated. “We continue to innovate and develop our world-leading product portfolio.”
Challenges Amidst Expansion and Market Growth
Despite its financial success, Evolution encountered multiple challenges in 2024 that impacted operations in key regions.
- Disruptions at its Georgia studio: Ongoing labor strikes reduced table capacity to 60%, affecting revenue projections for the live casino sector. Around 550 employees participated in union action, leading to delays in table game expansion.
- Cyberattacks in Asia: Targeted attacks on Evolution’s video distribution network affected revenue from this region, causing growth stagnation in an otherwise expanding market.
- UK Gambling Commission investigation: The regulator launched a license review after finding that Evolution’s games were being offered by unlicensed operators in the UK. Evolution has committed to full cooperation with the investigation.
Carlesund acknowledged these difficulties but emphasized Evolution’s long-term adaptability in an evolving regulatory environment.
“An increasing number of countries introduce a national regulation for online casino,” Carlesund said. “We view this development positively and consider it a long-term driver of growth for the industry.”
Live Casino Continues to Drive Revenue
The live casino division remained Evolution’s primary revenue generator, contributing over €1.78 billion, an increase of 16.6% year-on-year. The company expanded its table game portfolio, reaching 1,700 active tables, though the Georgia studio strike limited further growth.
Meanwhile, RNG-based gaming, including titles from NetEnt, Red Tiger, Big Time Gaming, and NoLimit City, saw modest revenue growth of 4.4%, reaching €287.4 million. Evolution has sought to revitalize this segment by increasing game releases and adding new gameplay features.
Mergers, Acquisitions, and Strategic Investments
Evolution expanded its portfolio through mergers and acquisitions, with €151.1 million in additional operating revenue attributed to these deals. Key acquisitions included Livespins and Arcadia Gaming Solutions, along with continued integration of previously acquired companies like Big Time Gaming and NoLimit City.
The company is also set to complete its acquisition of Galaxy Gaming by mid-2025, reinforcing its market leadership.
Financial Performance and Profitability
Evolution’s total operating expenses increased by 21.2%, reaching €794.6 million, largely due to higher personnel costs associated with new table launches and studio expansions. However, strong revenue growth offset these expenses, leading to:
- Operating profit of €1.42 billion (+24.2%)
- Pre-tax profit of €1.44 billion (+25.2%)
- Net profit of €1.24 billion (+16.2%)
- EBITDA of €1.56 billion (+23.2%)
In Q4 alone, revenue climbed 31.5% to €625.3 million, while EBITDA rose 35% to €455 million, showcasing continued momentum into 2025.
Evolution’s Outlook for 2025
Looking ahead, Evolution plans to expand its live casino operations, targeting new regulated markets and launching three to four additional studios, including projects in Brazil and the Philippines. The company also intends to repurchase up to €500 million in shares, reflecting confidence in its long-term profitability.
Carlesund remains optimistic about the company's growth trajectory, despite ongoing regulatory shifts and operational hurdles.
“With great determination, hard work, and professionalism, our employees have brought Evolution to an excellent position for future growth,” he stated. “We will relentlessly continue to strive to make Evolution a bit better every day also during 2025.”
Analyst Perspectives: Strong Growth but RNG Struggles
Industry analysts noted Evolution’s dominance in live casino, but expressed concerns about its RNG division’s slow turnaround.
- Regulus Partners criticized the RNG segment’s underwhelming performance, stating that Evolution’s recent releases have yet to translate into meaningful revenue growth.
- Evolution’s top five customers accounted for 46% of revenue, raising questions about the depth of its customer base.
- Analysts also flagged potential risks related to the UK Gambling Commission investigation and Asian market challenges.
Despite these concerns, Evolution remains debt-free with strong cash flow, positioning itself well for sustained profitability in 2025.
Source:
Evolution FY24 revenue surpasses €2 billon as it implements new regulatory measures, igamingbusiness.com, January 30, 2025
waseem69
10 days ago
Sr. Member
It mean investing $1 billion and gets profit $1 billion. Mostly people in the world wants to become millionaire in few hours that's why evolution and its other competitors earning a lot of profit.
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