Q3 2024 Evolution AB (publ) Earnings Call Transcript
Key Points
- Evolution AB (EVVTY) successfully launched several new games and opened two new live studios, enhancing their global presence.
- The company expanded its network by launching the first tables from a new studio in Colombia, serving the LatAm market and supporting Europe and Asia.
- Evolution AB (EVVTY) acquired Arcadia Gaming Solutions, which offers innovative technology for real-time engagement with physical arcade machines via mobile devices.
- The company reported a year-on-year revenue growth of close to 15% for the third quarter, with a constant currency growth estimated at 19%.
- North America showed good momentum with an 18% growth in the third quarter, and the company signed a partnership with Atlantic Lottery in Canada, expanding their reach.
- The company faced operational challenges in Georgia due to strikes and illegal actions by unions, reducing studio capacity to 60%.
- Cyberattacks against their Asian video distribution negatively impacted revenue, with advanced technology used to intercept and redistribute video feeds.
- Adjusted EBITDA margin for the third quarter was slightly lower than expected at 68.5%, below the initial full-year expectation of 69% to 71%.
- The company experienced increased costs due to the situation in Georgia, affecting overall financial performance.
- RNG revenue growth, although positive at 8.5%, was impacted by delays in improvements and enhancements, affecting the overall growth trajectory.
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Thank you. Good morning, everyone, and welcome to the presentation of Evolution's third quarter of 2024. My name is Martin Carlesund, and I'm the CEO of Evolution. With me, I have our CFO, Jacob Kaplan.
I will start with some comments on our performance in the quarter, whereafter I will hand over to Jacob for a closer look at our financials. After that, I will round off our presentation with an outlook for the remainder of 2024. And then we will open up the call for questions.
Next slide, please. The third quarter of 2024 has been continued focus on operational, development, and we have successfully launched several new exciting games and at the same time, opened two new line -- live studios. We're step-by-step continuing to build Evolution worldwide to meet future demand and make sure that Evolution is equipped to capture the great potential for the continued development of online casino around the globe.
However, the quarter has also included near-term challenges and events
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