Evolution Records a Revenue Increase of 28% in Second Quarter of 2023

Evolution, the world’s largest supplier of live dealer games for online casinos, has revealed its results for the second quarter of 2023 and the numbers show a revenue increase of 28 percent.

The company also recorded a net profit increase during the second quarter, with the positive results driven by strong growth in the live dealer segment. The downside is that Evolution’s slot games branch did not perform too well, its contribution registering a decline on a pro forma basis.

Martin Carlesund, the Chief Executive Officer of Evolution, explained that the company’s slot games business needs more time before it can generate more revenue. “Although a strong financial result, operationally I feel that we can do more to leverage our execution power to the fullest,” Carlesund concluded.

The company’s goal is to reach double-digit growth figures for its RNG operations, and so far it seems that more time is needed before that can eventually happen. However, the Evolution CEO stressed that the company’s slot games division is still “a highly profitable business” and that “operational improvements” will make it even more profitable in the future.

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As mentioned earlier, Evolution recorded a revenue growth of 28.2 percent year-on-year during the second quarter, with total revenue for the three months amounting to 441.1 million euros. The same quarter of last year generated revenue of 344 million euros.

Live casino revenue amounted to 371.8 million euros, a figure which represents an increase of 33.5 percent compared to the same quarter of last year. The company explained that the increase was mainly due to higher commission income from existing customers but also from new partnerships.

The company’s RNG business only managed to generate revenue of 69.3 million euros, a marginal increase from the 65.5 million euros that were generated in the same quarter of 2022. However, if we don’t take into account the revenue generated by Nolimit City, a slot supplier which was acquired by Evolution last year, then revenue decreased by 4 percent year-on-year.

Evolution’s costs also went up, the company had to spend 159.6 million euros during the second quarter, which is 23.3 higher than what was spent during the same quarter of last year. The main expenditure was personnel, which cost the company 87.5 million euros.

Nevertheless, Evolution recorded a pre-tax profit of 283 million euros, 30.4 percent higher than the second quarter of 2022, and a net profit of 264.1 million euros, an increase of 31.4 percent year-on-year.

Source:

“Slot growth “will take time” says Evolution CEO“, igamingbusiness.com, July 21, 2023.