Q4 revenue grew 16.6% to $513 million

Evolution's full-year 2023 revenues hit $1.45 billion, propelled by live casino surge

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B2B online casino solutions provider Evolution saw its operating revenues increase by 16.6% to EUR 475.3 million ($513 million) in the fourth quarter of 2023. For the full year, operating revenues grew 23.5% to EUR 1.8 billion ($1.94 billion).

EBITDA increased by 20.5% to EUR 337 million ($363.6 million) in Q4 and 25.7% to EUR 1.26 billion ($1.35 billion) for the full year. The company reported a profit of EUR 283 million ($305.2 million) for the quarter and EUR 1 billion ($1.07 billion).

In addition, earnings per share amounted to EUR 5.01 ($5.40) for the full year and the company’s board proposes a dividend of EUR 2.65 per share ($2.86).

“During 2023 we added 110 new exciting games to our portfolio, exceeding our target of 100 new games set at the beginning of the year. We also made significant progress towards a better supply balance of tables and simply accelerated expansion during the fourth quarter. Currency headwinds remain in the year-on-year comparison, revenue growth at constant currency is estimated to have been 25 percent in the fourth quarter,” Martin Carlesund, CEO of Evolution, said.

Live casino business accounted for 84.7% of this total revenue in 2023 at EUR 1.5 billion ($1.61 billion), which marks a revenue surge of 28.1% from the previous year. The growth was driven by heightened commission income from both new and existing customers. Additionally, revenue from Random Number Generator (RNG) activities recorded a 2.6% increase, reaching €275.3 million ($297 million), for the year.

“We have increased the pace of our studio expansions in the fourth quarter and expect to continue into 2024. We launched a new studio in Bulgaria and have initiated the project to build a second studio in Colombia. Investments in 2023 amounted to EUR 94 million ($101.4 million) which was below our guidance of EUR 120 million ($129.34 million) from the beginning of 2023, as we did not manage to expand quite as fast as we had planned,” Carlesund added.

"For 2024 we will repeat the capex guidance of EUR 120 million. We see strong demand and aim to accelerate investments during 2024 for our Live Casino product across the globe and will invest in new game development as well as expand table capacity both in our existing network of studios and in new studios. We plan to add at least four new studios during 2024 in addition to expansion in existing location."

In the fourth quarter, Evolution revised upward specific guidance for 2024. As the company anticipates the current year, it adjusted its guided EBITDA margin range to 69% to 71%. CEO Carlesund attributed this adjustment to the company's performance over the preceding year.

Regarding geographical performance, Europe continues to serve as Evolution's primary market, generating revenue of €185.8 million ($200.42), reflecting a 9.3% increase. Asia closely followed, contributing to a total revenue share of €181.7 million ($195.2 million).

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