Evolution: A Year of Remarkable Growth
Evolution, a prominent player in the gaming industry, has reported record-breaking financial results for the year 2023. The company's net profit surged by an impressive 27.0%, reaching €1.07 billion. This substantial growth can be attributed to the increased revenue across both live casino and random number generator (RNG) segments.
Live Casino Dominates Revenue
Of the total revenue of €1.80 billion generated in 2023, live casino contributed a staggering 84.7%. The rising global interest in live casino gaming has fueled this growth. However, Evolution's CEO, Martin Carlesund, expressed concerns about the company's ability to meet the surging demand.
Expansion Plans
To address the growing demand, Evolution has committed to opening four new game studios in various locations in 2024. This expansion follows the launch of a new studio in Bulgaria during Q4 of 2023. The company aims to invest approximately €120.0 million in 2024 to further enhance its live casino products and expand its studio network.
Impressive 2024 Performance
In 2024, Evolution experienced a 23.5% increase in revenue compared to the previous year, with live casino revenue leading the way at 28.1%. Despite higher operating expenses, the company's operating profit surged by 25.9% to €1.14 billion.
Continued Success in Q4
The final quarter of 2023 witnessed a 16.6% increase in revenue, driven by live casino revenue growth of 21.1%. Europe remained Evolution's core market, with Asia following closely behind in terms of revenue share.
Expectations for 2024
Looking ahead, Evolution raised its EBITDA margin range for 2024 to 69% to 71%. CEO Martin Carlesund expressed excitement about the company's future and its commitment to continued growth.
Lawsuit Looms Over Evolution
Despite its impressive financial results, Evolution is facing a class action lawsuit in the US. The lawsuit alleges that the company misled investors regarding its growth trajectory and compliance. Entities that purchased Evolution shares between February 14, 2019, and October 25, 2023, are seeking damages, naming CEO Martin Carlesund and CFO Jacob Kaplan as defendants.