Evolution’s 2023 Net Profit Exceeds Expectations following Strong Growth
LISTEN TO THIS ARTICLE:Evolution has revealed that increased revenue from both its live dealer and RNG segments in the 2023 financial year resulted in a net profit of €1.07 billion, an increase of 27%.
The company enjoyed growth in 2023, largely driven by live casino. Evolution reported revenue of €1.80 billion, 84.7% of which came from live gaming. However, while this is good news for the company, CEO Martin Carlesund suggested recently that it may not be able to meet demand.
Four New Studios Planned for 2024
As part of its efforts to meet growing global demand, Evolution will be opening at least four new studios in 2024.
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 €94.0m, which was below our guidance of €120.0m from the beginning of 2023, as we did not manage to expand quite as fast as we had planned. For 2024 we will repeat the capex guidance of €120.0m. We see strong demand and aim to accelerate investments during 2024 for our live casino product across the globe. We 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 locations.
Impressive Growth in 2023
Examining the annual data, 2023’s revenue saw a 23.5% increase compared to the previous year. The live online casinos were a significant contributor, with their revenue rising 28.1% to €1.52 billion, attributed to augmented commission income from both new and ongoing clients. The revenue from RNG also saw a rise, going up by 2.6% to €275.3 million.
In terms of expenses, operating costs rose by 25.6% to €688.9 million, with increases noted across various sectors. However, the surge in revenue meant that the operating profit also grew by 25.9%, reaching €1.14 billion.
Financial item costs amounted to €5.9m, resulting in a pre-tax profit of €1.15 billion, a 26.6% increase. Evolution, after tax payment of €77.7m, reported a net profit of €1.07 billion, marking a 27.0% growth. Additionally, EBITDA experienced a 25.7% jump, reaching €1.27 billion.
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