Evolution (EVO) Q4 2024 earnings summary

Executive summary

• Strong momentum in North America, Latin America, and Europe, while Asia faced challenges from cyberattacks and fraud, impacting growth.

• Ended 2024 with over 1,700 live tables, a net increase of about 100 tables, and a 23% YoY rise in game rounds played.

• Focused on product innovation, with 110 new games planned for 2025 and major launches like MARBLE RACE Live and FIREBALL ROULETTE Live.

• Strengthened patent portfolio and increased focus on IP protection.

• Regulatory landscape evolving, with Brazil opening as a regulated market in January, supporting long-term growth.

Financial highlights

• Q4 2024 total operating revenue: EUR 625.3 million (+31.5% YoY); full-year: EUR 2,214.1 million (+23.1% YoY).

• Q4 net operating revenue: EUR 533.8 million (+12.3% YoY); full-year net revenue: EUR 2,063.1 million (+14.7% YoY).

• Q4 adjusted EBITDA: EUR 363.6 million (margin 68.1%); full-year adjusted EBITDA: EUR 1,410.7 million (margin 68.4%).

• Q4 profit: EUR 377.1 million; EPS: EUR 1.83 (Q4), EUR 5.91 (FY); full-year profit: EUR 1,244.0 million.

• Other operating revenue of EUR 91.4 million in Q4, EUR 151.1 million for the year, due to reduced earnout liabilities.

Outlook and guidance

• 2025 EBITDA margin expected at 66%-68%, slightly lower due to Asia headwinds, resource mix, and increased focus on regulated markets.

• CapEx for 2025 expected at EUR 140 million, with continued investment in new studios and product development.

• Plans for 3-4 new studio openings in 2025, including major projects in Brazil and the Philippines.

• Dividend proposed at EUR 2.80 per share for 2024, with share repurchases up to EUR 500 million in 2025.

• Long-term margin potential remains strong as scalability improves and Asia recovers.