Online casino solutions provider Evolution has reported double-digit revenue growth for 2024, overcoming a series of operational setbacks, including labor disputes, cyber-attacks, and increased taxation.
The company’s full-year net revenue grew 14.7% year-over-year to €2.06 billion ($2.11 billion), with total operating revenues reaching €2.21 billion ($2.27 billion). Evolution’s adjusted EBITDA increased by 11.3% to €1.41 billion ($1.45 billion), though its EBITDA margin declined slightly to 68.4% from 70.5% in 2023.
CEO Martin Carlesund highlighted the company’s resilience and ability to adapt despite the challenges. “During the past year, Evolution has strengthened its position as the world’s leading provider and innovator of online casino games,” Carlesund said.
“However, it has also been a year in which we have handled several challenges such as the sabotage activities towards our Georgian studio, cyber-attacks in the Asia region, and also an increased tax rate.”
A key challenge Evolution faced in 2024 was strike action at its live casino studio in Tbilisi, Georgia. Employees walked off the job in July, citing concerns over working conditions, pay, and labor rights. The disruption reduced the studio’s operating capacity to 60%, forcing Evolution to scale down its live casino offerings at the facility.
Despite the setback, Evolution continued expanding its live casino segment, adding over 300 new tables across multiple locations. The total number of live casino tables reached 1,700 by the end of 2024, reflecting a net increase of 100 tables despite the reduced capacity in Georgia.
“We are currently operating without any disruptions in Georgia and expect to remain at the current reduced capacity as we ramp up expansion in other studios,” Carlesund noted.
Additionally, Evolution faced cyber-attacks targeting its video distribution services in Asia, which hampered revenue growth in the region. While the company did not disclose specific losses, Carlesund described Asia’s performance as flat compared to previous quarters due to ongoing security threats.
In its fourth-quarter results, Evolution reported €533.8 million ($549.2 million) in net revenue, marking a 12.3% increase from Q4 2023. The live casino segment grew by 13.3% year-over-year, generating €459.4 million ($472.66 million) in revenue, while revenue from RNG games rose 6.6% to €74.4 million ($76.5 million).
Adjusted EBITDA for Q4 increased by 7.9% to €363.6 million ($374 million), with an EBITDA margin of 68.1%, slightly lower than the 70.9% margin recorded in the same quarter of 2023. Evolution’s Q4 profit surged by 33.3% to €377.1 million ($388 million), with earnings per share increasing by 38.6% to €1.83 ($1.88).
“We saw strong momentum in the final quarter of the year in North America, Latin America, and Europe,” Carlesund said. “Development in Asia is flat versus the previous quarter as we continue to face challenges from cyber-attacks towards our video distribution in the region.”
Evolution expects continued expansion in 2025, though it anticipates a slightly lower EBITDA margin, due to increasing operational costs and a stronger focus on regulated markets. The company projects an EBITDA margin range of 66% to 68% for the year.
“We continue to innovate and develop our world-leading product portfolio,” Carlesund stated. “The key to our future success is to continue to give players an exciting, entertaining, and flawless playing experience.”
As part of its growth strategy, Evolution plans to open three to four new live casino studios in 2025, with ongoing projects in Brazil and the Philippines. The company also announced a proposed dividend of €2.80 ($2.8) per share for 2024, up from €2.65 ($2.7) per share in 2023.
Additionally, Evolution plans to repurchase up to €500 million ($514.4 million) worth of shares, signaling confidence in its long-term profitability.
“Evolution is highly profitable, debt-free, with strong cash flow delivering capital returns to shareholders,” Carlesund concluded. “We are very well positioned for 2025, and I look forward to what we will do during the year to continue to maximize after-tax earnings for our shareholders.”
Original article: https://www.yogonet.com/international/news/2025/02/03/93965-evolution-reports-147-growth-in-2024-despite-operational-challenges-ebitda-increases-by-over-11-
