Evolution’s operating revenue grows 16.7% to $536 million in Q1

B2B online casino solutions provider Evolution has reported robust financial performance for the first quarter of the year, with operating revenues growing Y-o-Y by 16.7% to €501.5 million (approximately $536 million). The figure, which exceeded the €429.6 million ($460 million) achieved in the corresponding quarter of the previous year, also marked a 5.5% increase from Q4 2023.

EBITDA experienced notable growth, reaching €345.8 million ($370 million) with a margin of 69%. This marks a 15.2% increase year-on-year and a 2.6% increase from the previous quarter.

Total profit amounted to €269.2 million ($289 million), with earnings per share at €1.27 ($1.36) showing a decrease from the previous quarter's figures of €282.9 million ($303.4 million) in profit and €1.31 ($1.4) in earnings per share.

Evolution's chief executive, Martin Carlesund, praised the company's performance and expressed confidence in its future growth prospects, noting Evolution will continue to invest and expand its global operations.

“Evolution is a growing, strong, profitable, all-equity funded company. In recent years our solid financial position has enabled us to remain focused on growth through periods of geopolitical uncertainty, a pandemic and rapid increases in interest rates,” Carlesund said.

The live casino sector saw particularly strong growth, with a 19.8% year-on-year increase in revenue. Evolution is also focused on expanding its random number generator (RNG) offerings, with plans to incorporate artificial intelligence (AI) and increase game releases.

Evolution reported growth across all regions, including stable increases in Europe and strong growth in Asia. The company has also expanded its presence in North America through partnerships with Fanatics and Caesars Digital, with plans to open a new studio in New Jersey. Strong growth was also reported in LatAm, where Evolution awaits regulation in Brazil.

Looking ahead, Evolution remains focused on increasing delivery capacity to meet growing demand, with plans to open studios in Colombia and the Czech Republic in 2024. The company's full-year guidance maintains an EBITDA margin of 69%-71%.

In total, Evolution is hoping to launch at least four studios this year, on top of a facility in Bulgaria that opened in Q4. Turning to RNG, the company launched 20 new titles in Q1 and is looking to further increase its offering over the year.

“During the period we have continued to increase our table capacity to meet the market demand and I am pleased to say that the progress made in Q4 has carried over into this year,” Carlesund said. “All together we have a much improved balance between supply and demand today compared to last year.”