Evolution generated revenue of €452.6m in Q3 2023, an increase of 19.6% year-on-year, according to its latest interim report.
Q3 revenue breakdown
Of the total revenue, the live casino segment accounted for the majority at €385.8m, up 24.3%.
Evolution said it is currently seeing “a higher demand for our product than what we currently can deliver,” and will therefore focus on continuing to expand its footprint to meet demand.
In the RNG segment, however, revenue fell by 1.9% year-on-year to €66.8m, despite the business saying Q3 “was a quarter when we made progress in our RNG operations.”
By region, Evolution’s largest market was Europe, which generated €175.1m in revenue, up 10% year-on-year.
Asia generated €172.1m, meanwhile, amid growth of 34.7%.
Growth in North America was modest, at 9%, as the region generated €54.7m in revenue.
In Latam, meanwhile, revenue was up 38.7% to €34.4m. Other markets generated just €16.3m, a slight 1.2% reduction compared to Q3 2022.
Overall, 40% of Evolution’s Q3 revenue came from regulated markets. That figure is consistent with the previous three quarters but one percentage point lower than in Q3 2022.
Foreign currency impact and profitability
Evolution said it had suffered a more significant than usual impact from foreign currency fluctuations, as the relative strength of the euro meant the value of international revenues was reduced.
The company estimated a negative headwind of six to eight percentage points on revenue growth due to the currency fluctuations, it said.
While revenue continued to increase overall, Evolution’s already high EBITDA margin also improved in the latest quarter, from 69% in Q3 2022 to 70.4%.
That left the business with EBITDA of €318.6m, 22.1% ahead of Q2 2022.
Operating profit was €287.1m, up 21.5%, at a margin of 63.4%, up from 62.4%.
Evolution declared an overall profit for the period of €272.8m, up 23.3% compared to the previous year.
That meant the business had a profit margin of 60.3%, up from 58.5%.
Earnings per share during the quarter were €1.28, up from €1.04.
Year-to-date results
For the first nine months of 2023, Evolution generated €1.32bn in revenue, up 26.1% year-on-year.
EBITDA for the period was €930.5m, up 27.6%, while operating profit came in at €840.1m, up 27.7%.
Overall, the business declared a profit for the period of €788m, up 27.1% from €619.9m in the first nine months of 2022.
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