Evolution Q2 24 Results: Key takeaways

Evolution’s half year interim report was released at the end of last week and as always makes for interesting reading.

The growth story continues, but at a slowing rate with RNG games lagging live dealers. Headline numbers for the quarter (April-June 2024) were:

• Operating revenue of EUR 508.4 million, up 15% on Q2 2023
• Operating profit of EUR 311.1 million, up 10% on Q2 2023

Live dealers outpace RNG

All revenue growth came from Evolution’s core live dealer product while their RNG games businesses flatlined. Live games revenue grew almost 18% on Q2 2023 to EUR 438 million. Revenue from RNG games grew just over 1% to EUR 70.3 million.

The RNG games have become part of Evolution’s product portfolio through acquisition of established game developers NetEnt, Red Tiger, NoLimit City and BTG.

Asia overtakes EU as biggest market

Asia overtook Europe as Evolution’s largest market during Q1. Asian market growth continued to outpace Europe in Q2 reaching revenue of just over EUR 200 million.

Revenue from regulated markets has increased. But as a share of total revenue it shrank from 40% to 39%.

Quarterly revenue growth trend

The days of regular 50% plus quarter on quarter revenue growth seem to have come to an end, for the time being at least.

The historical chart of quarterly revenues appears to be moving from an exponential to logarithmic phase.

Notable developments

Game releases that got a mention in the CEO’s comments included Lightning Storm, described by Martin Carlesund as, “one of the biggest releases ever in the industry.” It did feel like it may have gobbled a big chunk of development budget.

Balloon Race and Lightning Dragon Tiger were also singled out. But curiously there was no mention of Stock Market Live. In addition to the handful of new live games, 26 RNG games were released in the quarter.

Plenty more games planned for the year. Apparently the second half game release schedule will heavier than the first.

Two new studios are on the way – Colombia and Czechia studios are expected to go live during 2024, adding to the more than 20 already operated by Evolution.

Perhaps the biggest development was the acquisition of proprietary table game developer Galaxy Gaming for $85 million. Galaxy’s game titles may be found online as well as in over 600 terrestrial casinos around the world. The acquisition will help add to Evolution’s games portfolio, but it is also strategic from a regulatory point of view.

Galaxy are a licensed games provider in 28 US states providing Evolution with a fast tracked relationship with regulators choosing to go down the iGaming path.