Global online casino games and live dealer services leader Evolution recently announced its Q4 financial results for 2024, demonstrating positive revenue and earnings growth despite ongoing operational challenges. The company outlined strategic expansion initiatives and new product launches for 2025, though margin forecasts remain conservative due to regulatory challenges and persistent cybersecurity threats across key markets.
Financials Remained Robust
Evolution’s total operating revenues grew 31.5% to €625.3 million ($652.3 million), driven by net revenue growth of 12.3% to €533.8 million ($556.68 million). EBITDA surged 35% year-over-year to €455 million ($474.5 million), while adjusted EBITDA, excluding other operating revenues, expanded 7.9% to €363.6 million ($379.2 million). Profit for the quarter reached €377.1 million ($393.37 million), up 33% year-over-year, resulting in increased earnings per share of €1.83 ($1.91) from €1.32 ($1.38).
Regional performance in Q4 showed mixed results. North America benefited from expanded table capacity and new game launches, recording robust momentum. Europe maintained steady growth of around 10%, with promising prospects for 2025. Brazil’s newly launched regulated market created substantial opportunities in LatAm, offsetting disappointing Asian revenues impacted by ongoing cyber-attacks.
Despite overall positive financials, Evolution shares (STO: EVO) plummeted 8% following the earnings release, as investors expressed concerns over margin compression and regulatory challenges in 2025. The company faced scrutiny in Pennsylvania and the UK, while a highly publicized worker strike in Georgia raised questions about its operating practices.
Global Headwinds Could Dampen Expansion Ambitions
During a recent earnings call, Evolution CEO Martin Carlesund commented on the company’s financials, acknowledging the positive results but tempering his optimism due to operational hurdles and evolving compliance challenges. He noted that the situation in Asia presents a pressing concern, justifying the slightly lower EBITDA margin for 2025, projected at 66% to 68%.
“Expansion will continue in 2025 with a slightly more expensive resource mix, taking into account the situation in Asia and a strengthened focus on regulated markets,” said Carlesund.
Carlesund described the situation in Georgia as “sabotage activities” and highlighted other challenges due to tightening regulatory measures in key jurisdictions. The company swiftly adapted to these market shifts by implementing technical changes to ensure games are available only through locally licensed B2C operators. Evolution will also ramp up investments in new studios, targeting promising jurisdictions like Brazil and the Philippines.
Evolution is highly profitable, debt-free with strong cash flow, delivering capital returns to shareholders. We are very well-positioned for 2025, and I look forward to what we will do during the year.
Despite expected headwinds, Carlesund remained optimistic about 2025, highlighting Evolution’s growing portfolio of quality games. To win over investors, the Board of Directors proposed a dividend of €2.80 ($2.92) per share for 2024, up from €2.65 ($2.76) in 2023. Evolution also plans to repurchase shares worth up to €500 million ($521.46 million) in 2025 as part of its capital allocation strategy.
