Evolution’s Net Gaming Revenue Up 15% Despite Disruptions

Despite facing challenges such as cyber attacks and significant strike action, Evolution delivered strong third-quarter results in 2024, with net gaming revenue (NGR) rising by 14.7% to €519.4 million. The company’s live casino segment continues to drive growth, supported by RNG improvements and new game releases. Learn how Evolution managed to navigate these disruptions and achieve solid earnings growth, positioning itself for further success in global markets. Dive into the details of Evolution’s Q3 performance and the strategies that helped the company overcome these obstacles.

Evolution Achieves 15% NGR Growth in Q3 Despite Disruptions from Cyber Attacks and Strike Action

Evolution Gaming reported a robust 14.7% year-on-year increase in net gaming revenue (NGR), reaching €519.4 million in Q3 2024. This growth comes despite major disruptions, including strikes at its Georgia studio and cyber attacks targeting its video distribution in Asia. Evolution’s total operating revenues were also up by 27.9%, buoyed by a one-off gain related to a reduced earn-out liability.

The live casino segment, which continues to be a core driver for the company, saw a 16% growth year-on-year, with new tables launched in Colombia and the Czech Republic. This performance highlights Evolution’s strength in delivering high-quality, real-time gaming experiences to players around the world, even under difficult conditions.

Key Points:

1. Live Casino Growth and Market Expansion
   Evolution’s live casino revenue grew by 16%, driven by new launches and consistent player engagement. The company expanded its offerings by opening new tables in Colombia and the Czech Republic, reinforcing its presence in key markets.
2. RNG Business Turnaround
   After several challenging quarters, Evolution’s random number generator (RNG) segment experienced an 8.5% growth to €72.5 million, thanks to improvements in game releases and gameplay features. This includes the performance of brands such as NetEnt, Red Tiger, and NoLimit City.
3. Overcoming Disruptions from Strikes and Cyber Attacks
   Evolution faced significant operational challenges during the quarter. Strikes at its Georgia studio, which accounts for 40% of the company’s workforce, impacted operations. However, the company mitigated the damage by scaling up capacity in other studios. Meanwhile, cyber attacks targeted Evolution’s Asian video distribution, but the company successfully countered these with increased cybersecurity measures.

Strike Action and Cyber Attacks Impact Operations

Evolution’s Georgia studio, one of its largest operations, was hit by strike action in July 2024. The strike involved around 550 workers out of the studio’s 7,000 employees, affecting 40% of the company’s workforce. Evolution CEO Martin Carlesund acknowledged the challenges but noted that they managed to offset the lost capacity by increasing production at other studios. The studio is currently operating at 60% capacity, and Evolution is working to rebuild and stabilize operations.

In addition, cyber attacks in Asia targeted the company’s video distribution, likely related to the closure of the POGO sector in the Philippines, which uncovered various criminal activities. These attacks caused disruptions, but Evolution responded by scaling up its cybersecurity defenses to counter the ongoing threat.

Asia Remains a Strong Revenue Driver

Despite the disruptions, Asia continues to be a key growth market for Evolution. The company saw Asia revenue rise by 17.5%, from €172.1 million in Q3 2023 to €202.2 million in Q3 2024. However, the cyber-attacks suggest that the period of rapid growth in Asia might face more challenges in the future.

Despite facing significant operational disruptions from Georgia strikes and cyber attacks in Asia, Evolution has demonstrated its resilience and ability to adapt. The company’s strong performance in live casino and improved RNG offerings helped drive 15% NGR growth in Q3 2024, positioning it well for continued success in global markets. As Evolution continues to counter these disruptions and expand into new regions, its strategic adaptability is proving critical in sustaining growth.