do you have profits breakup by geography? In-practice research says the EVO margin is lacking in the USA margins or barely breaks even. It is tough to have a scale in the USA as they have to open a casino in every state to offer services in that specific state, so sites like usa would be subsidized by Asian profits. That big red flag. What's your thought about it?
Hi Ahtsham, that's an interesting question. I believe they have breakdowns of revenue by region, but they don't go anymore detailed than that. If you look at their annual report in 2023 on page 3 they have a chart with 19.8% coming from North America.
In North America I was aware that they make lower margins due to having to open studios in individual states, likely hiring more expensive workers and having less people per studio table. So it is possible they are making losses on some of the studios. However they make such high margins everywhere else I doubt it takes that much to make these studios profitable. If they are making a net margin of 50%+ on all their other studios I imagine it wouldn't take that much to break even in North America.
Thanks!
Quite the dive! Welll done.
Thanks
do you have profits breakup by geography? In-practice research says the EVO margin is lacking in the USA margins or barely breaks even. It is tough to have a scale in the USA as they have to open a casino in every state to offer services in that specific state, so sites like usa would be subsidized by Asian profits. That big red flag. What's your thought about it?
Hi Ahtsham, that's an interesting question. I believe they have breakdowns of revenue by region, but they don't go anymore detailed than that. If you look at their annual report in 2023 on page 3 they have a chart with 19.8% coming from North America.
https://mb.cision.com/Main/12069/3957229/2714767.pdf
In North America I was aware that they make lower margins due to having to open studios in individual states, likely hiring more expensive workers and having less people per studio table. So it is possible they are making losses on some of the studios. However they make such high margins everywhere else I doubt it takes that much to make these studios profitable. If they are making a net margin of 50%+ on all their other studios I imagine it wouldn't take that much to break even in North America.