Last updated on October 29th, 2024
Evolution, the number one software provider of live casino entertainment, has reported an impressive year-on-year NGR increase (net gaming revenue) of €519.4 million in Q3, which is a 14.7% increase when compared to the same period in 2023.
What is particularly impressive is the fact that Evolution managed to achieve this despite severe earning difficulties such as the Asian cyber attacks and ongoing strike disruptions, marking a constant currency growth of 19% via its live casino gains.
Moreover, Evolution’s operating revenues increased to €579 million, or 27.9%, with the company reporting a one-time gain from a reduced earn-out liability of €59.7 million.
From here, live casino revenue increased by 16% year-on-year, a figure that is supported thanks to the launch of new live tables in the Czech Republic and Colombia.
Additionally, Evolution’s RNG segment also saw an improved performance of €72.5 million, or 8.5%, a number which is greatly due to the successful financial achievements of its brands NetEnt and Red Tiger.
Evolution CEO Martin Carlesund attributed the impressive growth amid such dire challenges to gameplay enhancements and new game releases, highlighting “incremental improvements” in the company’s RNG offering.
We are beginning to see the results of our incremental improvements in the RNG offering. Ongoing strike action at Evolution’s Georgia studio, involving around 550 employees, reduced operations to 60% capacity. The company countered capacity loss by shifting production to other studios, although Regulus Partners noted that Georgia’s significant scale—40% of Evolution’s workforce—made it “too big to be replaced.
Another worrying issue for the company is the cyber-attacks against its video distribution in Asia, which is speculated to be due to continental disruptions such as the shutting down of POGOs in the Philippines.
Martin Carlesund commented on the Asian cyber-attacks, stating that the company will proceed to “aggressively scale up counter-measures” as it did until now.
Despite the strike and the cyber-attacks, Evolution’s revenue in Asia is constantly on the rise, with the company reporting a 17.5% market increase, or €202.2 million, which is substantially more than the €172.1 million which Evolution reported for Q3 2023.
