By BBBB
Evolution has released its latest financial report revealing a 27.9% increase in total operating revenues across the third quarter of 2024.
This led to a year-on-year increase of 14.7% in net revenues to €519.4 million.
Q3 2024 Highlights
- Operating revenues – €579 million ($553.1 million), up by 27.9%
- Net revenues – €519.4 ($553.1 million), up by 14.7%
- EBITDA – €417.2 million ($376.2 million ), up by 30.3%
- Profit – €328.6 million ($292.8 million), up by 20.5%
- Earnings per share amounted to €1.57 ($1.39), up by 23%
Martin Carlesund, CEO stated:
“We are beginning to see the results of our incremental improvements in the RNG offering. For the quarter year-on-year growth is 8.5 percent. We will maintain a high release pace of new exciting games across all four brands for the remainder of 2024. We also see how the benefits of OSS keeps growing for our operators with new features such as BetWithStreamer, SpinGifts and AI Slot Recommender all rolling out to the network during the coming quarters.”
He added:
“North America performs well in the quarter resulting in a year-on-year growth of 18 percent. Live Casino has developed very well throughout the year and continues to increase across all states. In RNG we have lost revenue and market share in the region during this year, but Q3 is the first quarter in which we see an increase in RNG revenue from previous year. In Europe we continue to see sound and steady performance, resulting in 11 percent growth for the quarter.
Asia is impacted by the aforementioned cyber-attacks and we see a small increase in revenue compared to the previous quarter. The region continues to have vast potential for us and we are actively addressing the current issues. We anticipate an improved situation gradually during 2025. Latin America shows percent growth in the third quarter. It is a region with great promise over the coming years, with Brazil regulating as a key event in 2025.”
Update on Georgia Strike
Carlesund gave an update on the failed negotiations that have seen employees in Georgia go on strike:
“During the summer we have faced a difficult situation in Georgia when union negotiations came to a halt after two years of dialogue. A strike was initiated in mid-July, the strike encompassed around 550 employees and had limited effect on our operational capacity. It’s important to state that Evolution fully supports the right of individuals to participate in unions and other organizations of their choice and to take part in collective bargaining.
Currently we are operating at about 60 percent of original capacity in the studio, which is a level we will try to maintain. With a network of over 20 studios, we are able to offset lost capacity using other studios to limit the impact on our customers but overall the disruption has had a negative effect. Currently, the situation in Georgia is stable and we will continue to rebuild and increase capacity in other locations in the network over the coming quarters to be able to support future growth.”
Evolution Legal Cases in U.S.
In January 2024, consumer class action specialists Federman & Sherwood initiated a class action lawsuit in the United States District Court for the Eastern District of Pennsylvania against Evolution AB (“Evolution”), CEO Martin Carlesund, and CFO Jacob Kaplan.
The lawsuit alleges that from February 14, 2019, to October 25, 2023, Evolution issued false or misleading statements regarding its compliance with regulatory requirements and the compliance of its customers. Additionally, the suit claims the company made deceptive statements related to its projected growth and growth strategies.
In March 2024, law firm Pomerantz also filed a class action lawsuit against Evolution, alleging securities fraud and other potentially unlawful business practices. This lawsuit covers the same timeframe as Federman & Sherwood’s case, highlighting similar concerns around the company’s representations and practices.
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