What is your take on capital allocation please? It is quite intriguing that the company postponed the announcement of dividend and share buyback to later this quarter.
Why do you believe that the market in asia has matured? I see online gambling as an activity you par take in as a young adult. Unless there is a population decline in Asia I find it hard to believe that the market is matured.
Asia as a market is a complete mystery to me (and to Evolution).
It is not impossible that the market is growing but the market's demand for EVO products on the whole is not growing. (I provided one possible explanation via traditional table games in the article as an example.)
I think the impact of piracy or illegal operators in Asia is underestimated in the article. Not only Evolution is facing this problem, even other operators. I also think that the Asian market is not matured.
Great article. But in my opinion you oversimplified the capital allocation framework. EVO is still a business that generates FCFF ~ €1.1B - €1.3B, asset light business model, huge operating margins and ROIC well above the cost of capital, so the growth is creating shareholder value. At this price level i would prefer that they choose to raise the buybacks. Waiting for the cycle of strict regulation in EU to break and the expansion in the Americas to gain momentum!
What is your take on capital allocation please? It is quite intriguing that the company postponed the announcement of dividend and share buyback to later this quarter.
https://x.com/i/status/2021562799567102246
amazing analysis, Well DONE!!!
unfortunately I am trapped for some time with Evolution.
I hope that could turn Asia business first and continue expand their Americas business.
but I am not confident anymore. probably they should remove dividend and focus in buying new companies and their own shares
Sharp and relevant as always. Thanks!
Where did you get the data for sales by top customers
Company publishes customer concentration percentages in Q4 results. You just need to multiply them with the net revenues.
I think the bouncing around of revenue in Asia is a good indicator that revenue is being impacted due to fighting cyber crime.
Why do you believe that the market in asia has matured? I see online gambling as an activity you par take in as a young adult. Unless there is a population decline in Asia I find it hard to believe that the market is matured.
Asia as a market is a complete mystery to me (and to Evolution).
It is not impossible that the market is growing but the market's demand for EVO products on the whole is not growing. (I provided one possible explanation via traditional table games in the article as an example.)
I think the impact of piracy or illegal operators in Asia is underestimated in the article. Not only Evolution is facing this problem, even other operators. I also think that the Asian market is not matured.
Great article. But in my opinion you oversimplified the capital allocation framework. EVO is still a business that generates FCFF ~ €1.1B - €1.3B, asset light business model, huge operating margins and ROIC well above the cost of capital, so the growth is creating shareholder value. At this price level i would prefer that they choose to raise the buybacks. Waiting for the cycle of strict regulation in EU to break and the expansion in the Americas to gain momentum!