Amid strategic market expansion, B2B Live Casino provider Evolution has reported a significant 16 percent surge in operating revenues to just over €1 billion (£842.61m) in its first financial half, ending June 30.
The Swedish-origin iCasino maestros have just announced their intended US$85 million (£65.78m) acquisition of U.S.-centric Galaxy Gaming, licensed in 28 American states, along with their own Q2 and H1 fiscal reports.
“We have scored significant performance improvements in the second quarter of 2024,” Evolution CEO Martin Carlesund signalled to the money markets and iGaming industry watchers.
Operating revenues in Q2 rose by 15.3 percent and hit €508.4 million (£428.38m), compared to €441.1 million (£374.2m) in the same period last year.
EBITDA in the quarter also experienced growth, increasing by 10.9 percent to €345.8 million (£291.37m); although margins slipped to 68 percent, from 70.7 percent.
Profit
Profit for the period amounted to €269.1 million (£226.74m), up from €264.1 million (£222.53m), year-on-year and, in good news for stakeholders, earnings-per-share rose to €1.28 from €1.24.
Overall, in H1, EBITDA grew by 13 percent, totalling €691.6 million (£582.75m), with a margin of 68.5 percent, slightly down from the 70.3 percent of 2023.
Profit for H1 was €538.3 million (£453.58m), compared to €515.2 million (£434.11m) in the previous year. Earnings-per-share increased to €2.55 from €2.41, compared to the first half in 2023.
“I am happy with the progress we have made on several of our initiatives. We are intensively working on introducing our offering to new markets that have recently regulated or are in the process of regulating such as the Philippines, Brazil, and the Czech Republic,” affirmed Carlesund (pictured, right).
Referring to the acquisition of Galaxy Gaming–an independent developer and distributor of casino table games and gaming technology solutions–, Carlesund stressed that the move aligned with Evolution’s strategy to provide top-tier casino games globally and supply its customers with premier gaming content.
Underlined Carlesund: “During 2024 we expect to go live with our first tables from the new state-of-the art studios in Colombia and the Czech Republic.
Unique
“Today we operate over 20 studios around the globe, creating a unique capacity to deliver both volume and variation of our world-leading games to customers.
“[Globally] underlying growth drivers remain strong and there is vast potential in all our regions.
“Europe continues to show a steady pace of growth, and Asia continues to be the fastest-growing region. Our presence in North America expands, offering more successful game types in each state.
“LatAm is performing well, even though the Brazilian market is still waiting for the transition to regulation.”
Meantime, Stockholm-listed Evolution, founded in 2006, will continue to pay shareholders a dividend of 50 percent of net profits annually — using the balance to repurchase shares unless an extraordinary dividend provides better shareholder value.
“The Board currently believes that investing in our own shares is highly value-enhancing to shareholders and is initiating a buy-back program of up to €400 million (£337.04m),” said Carlesund.
Omnichannel
The acquisition of Galaxy is expected to close by mid-next year.
Evolution intends to retain Galaxy’s management and employees and plans to operate Galaxy Gaming as a separate and independent business unit.
“The transaction represents the opportunity to unite two world-class, customer-focused teams in a way that will benefit all stakeholders,” said Carlesund.
Matt Reback, President and CEO of Galaxy Gaming, added: “This acquisition by Evolution empowers Galaxy to sustain and maintain its independence while continuing to focus on growth and expanding its operations, leveraging Evolution’s operational and financial strength to facilitate product sharing and drive cutting-edge Omnichannel innovation.”
