Evolution, a leading player in the gaming industry, reported significant growth in the fiscal year ending on December 31, 2023, primarily driven by the thriving live casino segment.
Out of the total revenue of €1.80 billion generated during this period, live casino accounted for a substantial 84.7%.
This surge in live casino popularity was attributed to the increasing global interest in this format, signaling a promising outlook for the company.
However, CEO Martin Carlesund expressed concerns about Evolution’s ability to keep up with the surging demand.
Following the Q3 report, Carlesund had pledged to establish new game studios worldwide, and this commitment still stands.
In 2024, Evolution plans to inaugurate at least four new studios, in addition to the Bulgaria facility that launched in Q4 of the previous year.
The company has allocated a budget of €120.0 million for capital expenditures in 2024, aiming to meet the growing demand for their live casino product and expand their table capacity globally.
The fiscal year 2023 witnessed a robust financial performance, with a 23.5% year-on-year increase in revenue.
Live casino emerged as the frontrunner, recording a 28.1% surge in revenue to €1.52 billion.
Despite a 2.6% growth in RNG (Random Number Generator) revenue to €275.3 million, operating expenses also saw an uptick of 25.6%.
Nevertheless, the growth in revenue helped boost the operating profit by 25.9% to €1.14 billion.
After accounting for financial items costs and taxes, Evolution reported a pre-tax profit of €1.15 billion, reflecting a 26.6% increase.
The company’s net profit amounted to €1.07 billion, marking a 27.0% growth, while EBITDA soared by 25.7% to €1.27 billion.
In Q4, Evolution continued its upward trajectory with a 16.6% increase in revenue to €475.3 million.
Live casino revenue for this period surged by 21.1% to €405.6 million, though RNG revenue saw a 3.7% decline to €69.8 million.
Geographically, Europe remained the core market, with revenue reaching €185.8 million, while Asia closely followed with total revenue of €181.7 million.
The company emphasized that 40% of its Q4 revenue came from regulated markets.
Additionally, Q4 net profit amounted to €282.9 million, a substantial 26.6% growth, and EBITDA in Q4 increased by 20.5% to €337.0 million.
Looking ahead, Evolution raised its guided EBITDA margin range for 2024 to 69% to 71% based on its strong performance in the past year.
Despite facing a class action lawsuit in the US alleging deception of investors regarding growth projections and compliance, Evolution remains focused on expansion and innovation, aiming to deliver a stellar performance in 2024.