Evolution (EVO) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues rose 15.3% year-over-year to EUR 508.4 million, with Live segment up 18% and RNG up 1.5%.

• EBITDA increased 10.9% to EUR 345.8 million, with a margin of 68.0%.

• Expanded into new regulated markets including Czech Republic, Brazil, and Philippines, and launched live casino games in Delaware.

• Announced acquisition of Galaxy Gaming for up to EUR 124 million, expected to close mid-2025, to strengthen U.S. presence.

• Major game launches included Lightning Storm and a record EUR 35 million Crazy Time payout.

Financial highlights

• Q2 2024 revenue: EUR 508.4 million (+15.3% YoY); constant currency growth at 19%.

• Q2 2024 EBITDA margin: 68.0%; operating profit: EUR 311 million; tax rate at 15.3% due to Pillar Two regime.

• Live segment revenue: EUR 438.1 million (+18% YoY); RNG revenue: EUR 70.3 million (+1.5% YoY).

• Cash and cash equivalents at period end: EUR 688.7 million.

• Dividend of EUR 559.3 million paid and share repurchases of EUR 284 million executed in H1 2024.

Outlook and guidance

• Full-year 2024 EBITDA margin guidance maintained at 69%-71%.

• Over 100 new game releases planned for 2024, with major launches like Lightning Storm scheduled for Q3.

• Plans to launch a new studio in the Czech market and initiate 1-2 additional studio builds in 2024.

• Focus on accelerated game delivery, capital returns, and expanding delivery capacity in H2 2024.

• 2025 roadmap in development, aiming for earlier game releases and higher ambition.