Evolving Super Fast, Evolution Can’t Keep Up With Demand In Q3

B2B casino giants Evolution has released its financial data for Q3–and the first nine months of 2023–and the company is evolving so fast it can’t keep up with customer demand for its compelling game play.

In the third quarter of 2023, the company’s operating revenues were €452.6 million (£394.47m) a year-on-year increase of 19.6 percent.

EBITDA for the quarter was €318.6 million (£277.68m), compared to €261 million (£227.48m) in Q3 2022, with a margin of 70.4 percent.

Reported profit for Q3 was €272.8 million (£237.76m), against the €221.3 million (£192.88m) of the same quarter last year. Earnings-per-share for the quarter were up to €1.28, from €1.04 in Q3 2022.

For the period from January to September 2023, Evolution’s operating revenues reached €1.323 billion (£1.15bn) — a 26.1 percent increase from the €1.049 billion (£915.16m) of the same period in 2022.

EBITDA for these nine months was €930.5 million (£811.01m), compared to €728.9 million (£635.29m) in 2022, and had a margin of 70.3 percent.

And profit for the Swedish-origin company in the nine months ending September 30 was €788 million (£686.8m), an increase from €619.9 million (£540.29m) on the same three quarters of 2022. Earnings-per-share in this time-frame were €3.69, compared to the €2.91 reported in the prior year’s equivalent period.

Faster, Faster

“This is a good financial performance and the underlying growth-drivers for the business remains solid,” commented Evolution Group CEO Martin Carlesund.

“During the third quarter we released more games than during any earlier quarter: A strong development that I am pleased with, as entertaining games–and a flawless player experience–are the absolute most important factors for our long-term success.

“Our Live Casino revenue grew to €385.8 million (£336.25m) for the quarter and we see a higher demand for our product than what we currently can deliver. That is a measure of the phenomenal traction our games have.

“However, it also means we are not expanding our studios at the right pace.

“We have faced delays, and in some cases not executed fully, in several of our planned studio projects for this year.

“But even more importantly we need to increase the pace of recruitment both in existing studios as well as to support new studios.

“We are working hard to get back on track in our existing locations and we will continue to invest in our network of studios and add new locations. We opened a smaller studio in Colombia just after the end of the third quarter.

“We plan to open one new studio in Europe later this year and three to four new studios in Europe, North America and LatAm.”

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