Evolution Sees Revenue Surge in 2024, Projects Margin Adjustments in 2025

Evolution wrapped up 2024 with significant revenue growth, surpassing €2.21 billion, reflecting a 23.1% increase from the previous year. The company’s live casino segment continued to be its primary revenue driver, while its random number generator (RNG) division showed steady, albeit slower, progress. Despite strong financial results, Evolution faced operational and regulatory challenges that influenced its outlook for 2025.

For the full year 2024, Evolution’s total operating revenue reached €2.21 billion, marking a 23.1% year-on-year increase. Net revenue climbed 14.7% to €2.06 billion, while other operating revenue, attributed to a reduction in earn-out liabilities, accounted for €151.1 million. EBITDA rose by 23.2% to €1.56 billion, maintaining a margin of 70.5%. Adjusted EBITDA, excluding other operating revenue, increased by 11.3% to €1.41 billion, with a slightly lower margin of 68.4% compared to 70.5% in 2023.

Live casino remained Evolution’s dominant segment, generating €1.78 billion in revenue, up 16.6% from the previous year. The company expanded its live table capacity to over 1,700 by year-end, despite setbacks at its Georgia studio, which operated at a reduced capacity due to labor disruptions. The RNG sector, which includes brands like NetEnt, Red Tiger, Big Time Gaming, and NoLimit City, recorded a modest 4.4% revenue increase to €287.4 million. Evolution has been working to enhance its RNG portfolio, but growth in this segment remains slow.

The final quarter of 2024 saw total revenue grow 31.5% year-on-year to €625.3 million. Live casino accounted for €459.4 million of that, reflecting a 13.3% annual increase, while RNG revenue rose 6.6% to €74.4 million. Operating profit for the quarter increased by 38%, reaching €425.3 million, and net profit climbed 32.2% to €377.1 million. Adjusted EBITDA for Q4 amounted to €363.6 million, up 7.9%, with a margin of 68.1%.

CEO Martin Carlesund commented on the results, highlighting Evolution’s resilience despite challenges. “During the past year Evolution has strengthened its position as the world’s leading provider and innovator of online casino games.” He noted that the company faced several obstacles, including cyberattacks in Asia, an increased tax rate, and disruption at its Georgia studio, which affected table capacity.

Evolution remains focused on growth and plans to open three to four new studios in 2025, including locations in Brazil and the Philippines. The company aims to expand in regulated markets, adjusting its operational approach to comply with evolving licensing frameworks. A key regulatory development includes the Gambling Commission’s ongoing review of Evolution’s license in Great Britain, prompted by concerns over unlicensed operators accessing its games.

Carlesund acknowledged the shifting regulatory landscape, stating, “An increasing number of countries introduce a national regulation for online casino. We view this development positively and consider it a long-term driver of growth for the industry.” Evolution has implemented technical measures to ensure its games are available only through locally licensed operators in regulated markets.

Despite strong revenue growth, Evolution’s 2025 outlook includes expectations of a slightly lower EBITDA margin, estimated to fall between 66% and 68%. Factors contributing to this forecast include increased operational costs related to compliance, expansion, and security measures addressing cyber threats.

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Evolution continues to enhance its game portfolio, with 2025 set to feature its strongest lineup of releases yet. Announced titles include Marble Race, a new fishing game, an innovative crash-style game, and Fireball Roulette. Moreover, the company has already launched a new live casino title this year: Always 8 Baccarat. The supplier also announced that it is ramping up efforts to combat unauthorized copies of its proprietary games.

Additionally, Evolution’s board has proposed a dividend of €2.80 per share for 2024, reflecting an increase from €2.65 the previous year. The company also announced plans to repurchase up to €500 million worth of shares in 2025 as part of its capital allocation strategy.

Source:

Evolution press release. January 31, 2025.