Evolution (EVO) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues rose 27.9% year-over-year to EUR 579 million, with net operating revenues up 14.7% to EUR 519.4 million and adjusted EBITDA margin at 68.5%.

• Profit for Q3 reached EUR 328.6 million, with EPS of EUR 1.57 (diluted), up from EUR 1.26 year-over-year.

• New studios launched in Colombia and Czech Republic, expanding global capacity and North American offering.

• Operations in Georgia were downsized due to strike, sabotage, and illegal union actions, reducing studio capacity and impacting results; increased cyberattacks in Asia also affected performance.

• Acquisitions of Arcadia Gaming Solutions and Livespins Holdings Limited, and share repurchase program initiated under new capital allocation framework.

Financial highlights

• Total operating revenue for Q3 2024 was EUR 579 million, including net operating revenue of EUR 519.4 million, up 14.7% year-on-year.

• Adjusted EBITDA margin was 68.5% for Q3 2024; EBITDA margin including non-recurring items was 71.7%.

• Live Casino revenue reached EUR 446.9 million (up 15.8% year-on-year), RNG revenue EUR 72.5 million (up 8.5% year-on-year).

• Profit for the quarter was EUR 328.6 million, with EPS of EUR 1.57 (diluted), and nine-month EPS up 13% year-on-year.

• Cash and equivalents at period end were EUR 764.6 million, with strong operating cash flow and cash conversion over 80%.

Outlook and guidance

• EBITDA margin for Q4 2024 is expected to remain around 68.5%, slightly below the initial full-year guidance of 69–71%.

• Continued investment in new studios, with projects underway in Brazil and the Philippines, and further capacity expansion planned.

• 2025 guidance to be provided with full-year results; gradual improvement in Asia and Georgia operations anticipated.