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Evolution’s Revenue Surpasses €2 Billion as Regulatory Challenges Loom

Evolution, the online casino technology giant, has posted a record-breaking €2.21 billion in revenue for the 2024 financial year, marking a 23.1% increase from the previous year. The company’s full-year earnings, published today (30 January), highlight continued dominance in the live casino sector alongside moderate growth in its random number generator (RNG) business.

Despite facing operational disruptions and mounting regulatory scrutiny, Evolution’s financials paint a picture of a business still expanding at a healthy pace. CEO Martin Carlesund credited the growth to the company’s ability to innovate while maintaining a seamless experience for players worldwide.

Regulatory Pressures and Security Threats

Not all of Evolution’s year was smooth sailing. The company encountered a series of setbacks, ranging from cyber-attacks in Asia to industrial unrest at its Georgia studio. The latter issue, which led to a reduced workforce and lower production capacity, directly impacted its live casino operations.

One of the most pressing concerns, however, emerged late in the year when the UK Gambling Commission announced a review of Evolution’s licence. The regulator flagged concerns about its games being accessible to unlicensed operators targeting British players. Evolution has since been cooperating with the investigation, taking steps to reinforce compliance with national regulations.

Carlesund acknowledged the increasing complexity of global gambling laws but remained optimistic about the long-term impact of stricter oversight.

  • He pointed to the rise of national regulations as an opportunity rather than a hindrance.
  • The company has implemented technical solutions to restrict game access to properly licensed operators.
  • Evolution continues to adapt to shifting legal frameworks while maintaining its market-leading position.

Evolution Gaming studio live dealer casino

Live Casino Continues to Dominate Revenue

A key takeaway from Evolution’s latest results is the unshaken strength of its live casino segment. This division alone generated €1.78 billion in revenue, an impressive 16.6% increase compared to the previous year.

The company’s live casino offering, which now includes more than 1,700 tables, remains its primary revenue driver. Despite disruptions in Georgia, where staff strikes forced operations to run at just 60% capacity, Evolution managed to increase its table count.

Meanwhile, Evolution’s RNG business, which includes NetEnt, Red Tiger, Big Time Gaming, and NoLimit City, saw a more modest 4.4% revenue increase to €287.4 million. The company has been attempting to reinvigorate this segment through new game launches and feature enhancements, but the turnaround has been slow.

Market analysts at Regulus Partners expressed scepticism over Evolution’s RNG recovery efforts, pointing out that flashy marketing language has yet to translate into significant financial gains.

European Market Growth Raises Questions Over Market Share

Evolution’s geographic revenue breakdown reveals a 9% year-over-year growth rate in Europe for the fourth quarter. While positive, this pace lags behind the company’s overall revenue increase, suggesting a potential erosion of market share.

A recent analysis by Regulus Partners suggested that Evolution’s European business may be losing ground to competitors, even as overall market demand remains strong. Whether this trend continues into 2025 will be closely watched by investors and industry analysts alike.

Evolution remains active on the acquisition front, having acquired Livespins and Arcadia Gaming Solutions in 2024. The company is also expected to finalise its purchase of Galaxy Gaming by mid-2025, expanding its footprint further.

Record Profit Despite Rising Costs

Even with higher operating expenses, Evolution’s bottom line remained strong. Personnel costs increased due to new table launches and studio expansions, contributing to a 21.2% rise in total operating expenses to €794.6 million.

Despite these added costs, the company still delivered a net profit of €1.24 billion, up 16.2% year-on-year. EBITDA grew 23.2% to €1.56 billion, demonstrating continued financial resilience.

A breakdown of Evolution’s full-year performance shows:

Financial Metric FY24 (€ Billion) YoY Change (%)
Revenue 2.21 +23.1
Operating Expenses 0.79 +21.2
Operating Profit 1.42 +24.2
Net Profit 1.24 +16.2
EBITDA 1.56 +23.2

Strong Q4 Performance Sets Up 2025 for Growth

Looking at the final quarter of the year, Evolution closed out 2024 on a high note. Revenue for Q4 jumped 31.5% to €625.3 million, with live casino making up the lion’s share at €459.4 million.

Operating profit soared 38.0% for the quarter, while pre-tax profit climbed 40.4% to €425.3 million. Net profit came in at €377.1 million, a 32.2% increase compared to the same period last year.

The results underscore Evolution’s ability to maintain strong margins and revenue momentum even amid industry turbulence.

Carlesund remains optimistic about the year ahead, vowing to push the company towards further innovation and market expansion. Whether Evolution can sustain its growth trajectory in 2025 while navigating ongoing regulatory scrutiny remains the big question.

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