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Online casino game developer Evolution reported second-quarter earnings of $551 million. This represents a 15.3% increase over the second quarter of 2023 when the company reported earnings of $477.4 million.
Evolution’s EBITDA increased by 10.9% to $373 million, with a margin of 68.0%. This margin fell slightly from 70.7% to 68.0%. This slight slowdown in growth could be a concern if it continues.
So far this year, Evolution’s revenue is up 16% from last year to over a billion ( $1,188 million) compared to the first half of 2023.
Revenue from live casino games increased by 18% compared to last year. Evolution is focused on continuing to expand its studio network and delivery capacity.
During the quarter, Evolution expanded its North American offerings. For example, BetRivers Casino in DE added Evolution content through a deal with Rush Street.
When describing Q2 2024 earnings, Evolution’s CEO Martin Carlesund said:
“I see the financial result in the quarter as solid although not fully reflecting our operational performance.”
While earnings for the quarter were “solid,” they were negatively impacted by the largest payout ever in its online casino segment for its Crazy Time game.
Bonus.com notes that Evolution paid $37.51 million in prizes during the quarter to nearly 5,000 players.
Even though this is a big payout Carlesund says this is part of what makes Evolution games popular. The company is looking forward to new games and a heavy release schedule in the second half of the year.
Evolution starts Q2 2024 with Galaxy Gaming acquisition
Evolution dove headfirst into the third quarter. Earlier this month it took a step forward into expanding its footprint in the US when it acquired Galaxy Gaming.
The company expects the deal to close by mid-2025. Once it’s complete, the two companies will continue to operate separately. Galaxy currently has 130 gaming licenses in 28 states in the US.
This deal should help add stability to Evolution’s North American operations. Evolution’s revenue in North America has fluctuated frequently over the past couple of years. During the second quarter, revenue fell from $67.51 to $65.45 .
Last year Galaxy reported $31.7 million in gross revenue between its land-based and online casino divisions. The online casino division was responsible for $11.4 million in gross revenue last year.
Both segments of the business will continue to operate after the deal between Galaxy and Evolution is consummated.
Look for Lightning Storm and 100 games in second half of 2024
Evolution plans to release 100 games during the second half of the year. It pushed back the release of Lightning Storm until this quarter.
The company has big expectations from this live casino game. In his earnings comments, Carlesund said:
“The release of Lightning Storm will be one of the biggest releases ever in the industry. We have taken some extra time to make sure we release something spectacular that the market has never seen before.”
He also says that Evolution’s presence in North America will continue to expand with “more successful game types in each state.”
