At In Practise, we study the operating realities of high-performing companies through primary research. This is why Evolution Gaming piqued our interest: over the last decade, Evolution has compounded EPS at 66% and generated over 1.1bn EUR in annual operating profit last year. It’s the 10th largest listed company in Sweden and has been one of the best performing stocks in Europe in recent years.

A core driver of EVO's performance is its unregulated Asia division which has compounded revenue at ~100% since 2018 and accounts for 37% of FY23 Group revenue. The growth in Asia has coincided with Group EBIT margin expansion from 36% to 63.5% over the same period.

EVO does not disclose where or how its Asia revenue is generated or the underlying profit of any country or jurisdiction globally. 

Over the last 6 months, we’ve spent 100s of hours sourcing and interviewing Asian online casino operators, aggregators, and suppliers to understand how Evolution Gaming’s Asia business works. The market is relatively opaque and unregulated. We sourced several experienced operators on the ground across Asia who were able to shed light on how the business works.