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Evolution reported continued growth in its live casino segment in Q1 2024, helping push quarterly revenue to over €500m.

The iGaming supplier reported a total of €505.1m in revenue for the three-month period ending 31 March, up 16.7% from Q1 2023.

Live represented €431.3m of the total, growing 19.8% from the same period the previous year.

The business noted the progress, but argued more work is needed to capitalise on the market opportunity and serve underlying demand.

The RNG segment on the other was more anaemic, as revenue grew 0.9% to €70.1m. The vertical has been a historic weakness for the provider despite its 2020 €1.87bn acquisition of NetEnt.

Evolution CEO Martin Carlesund said the supplier is attempting to incrementally improve its RNG business through faster game releases and new game tools.

He added it is injecting AI into its systems infrastructure, and in areas where the company believes it can increase efficiency, analysis or automation.

On a geographic basis, Asia drove the majority of the growth, with the region’s revenue growing 28.3% year-on-year to €197.6m.

Europe, historically the driving force behind Evolution revenue, fell to second place in the quarter as revenue there hit €191.0m, up 10%.

Evolution also reported robust EBITDA growth, which increased 15.2% to €345.8m. This resulted in net profit of €269.2m.

While this led to an 8.2% increase in earnings per share to €1.27, the company’s profit margin fell from 58.5% to 53.7%.

Carlesund said: “Evolution is a growing, strong, profitable, all-equity funded company – in recent years our solid financial position has enabled us to remain focused on growth through periods of geopolitical uncertainty, a pandemic and rapid increases in interest rates.

“We will continue to invest and expand our global operations and come to work hungry, ambitious, and excited for what more we can achieve.”

Evolution highlights increased capacity

Evolution said in Q3 2023 that demand for its live services had outpaced its capacity to deliver, something the company then said it had addressed in Q4.

Today, the business said it continued to increase its table capacity in Q1 2024 through accelerated recruitment and studio expansion.

As such, it highlighted the “much improved” balance between supply and demand compared to the previous year.

Carlesund added: “Throughout 2024 we will continue to have full focus on increasing our delivery capacity. In this phase with heavy focus on expansion margins will initially be pressured, but the ongoing investments pave the way for increased revenues going forward.”

Carlesund also hailed the “fantastic” news that Evolution’s live games launched with bet365 last week. NEXT.io exclusively reported this development yesterday.

However, the CEO said the deal should be kept in proportion.

“Ten years ago, it would be a financially major deal,” he said. “Today, Evolution is so large that one single operator… won’t affect the numbers in a very significant way.”

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