Evolution AB Investment Thesis Statement

When Others See Uncertainty, We See Opportunity

Overview:

2024 proved to be a challenging year for Evolution, as the company faced a series of significant headwinds: labour disruptions at its Georgian studio, cyber-attacks affecting Asian operations, increased tax rates, and substantial foreign exchange pressure. Despite these challenges, Evolution demonstrated the resilience of its business model, growing revenue by 15% while maintaining a 64% operating margin. The market's reaction to these short-term difficulties has created what we believe is an asymmetric investment opportunity in the company. Our thesis is built around the following three points: