• Home
  • News
  • Results
  • Q4 2023: Evolution revenue up 16.6% as firm enters “product leap years”
igamingnext photo
Evolution generated €475.3m in revenue and €337m in EBITDA in Q4 2023, corresponding to year-on-year revenue growth of 16.6% and an EBITDA margin of 70.9%.

Revenue from the live casino segment increased by 21.1% year-on-year to €405.6m in Q4. 

“We are now clearly in a better balance between supply and demand than a quarter ago,” said CEO Martin Carlesund. 

In Q3 2023, Evolution said demand for live casino outpaced its capacity to deliver.

“The hard work to improve capacity and focus on expansion the past few quarters has paid off,” he added. 

In Q4, Evolution opened a new studio in Bulgaria and by year-end it was operating over 1,600 live tables in total.

While RNG revenue increased sequentially by 4.5% from Q3 to €69.8m in Q4, it declined 3.7% compared to the corresponding quarter in 2022. 

“Every day we move one step forward, and I am happy with the development in Q4. We aim for continued step-by-step improvements during 2024,” Carlesund said. 

Geographical breakdown

Geographically, Evolution saw robust growth in Europe, with nearly 10% year-on-year growth for the second consecutive quarter as it generated €185.8m in the region. 

“There is still untapped potential in Europe, and it remains a region with good potential for Evolution,” Carlesund said. 

The US exhibited “strong momentum” with 8% sequential growth, and Asia and Latam emerged as the company’s fastest-growing regions.

Evolution said it will continue to invest in the Latam region in the years to come and has initiated a project to build a second studio in Colombia. 

For the full year 2023, Evolution’s revenue increased by 23.5% to €1.8bn, and EBITDA rose by 25.7% to €1.3bn, corresponding to a margin of 70.5%.

The product leap years

Investments in 2023 amounted to €94m, below Evolution’s guidance of €120m from the beginning of 2023.

The supplier admitted that it did “not manage to expand quite as fast” as planned. 

For 2024, Evolution therefore repeated its capex guidance of €120m. 

The company said it plans to add at least four new studios during 2024 in addition to expansion in existing locations. 

Carlesund highlighted that Evolution exceeded its 2023 target of more than 100 new game releases across both RNG and Live, as it released a total of 110 games throughout the year. 

Despite this achievement, “we come into 2024-2025 with higher ambitions than ever,” Carlesund said.

Looking ahead, he described 2024 and 2025 as “the product leap years”.

“We are going to deliver more exciting games, we will explore new types of games that we do not have today and we will invest in unique games for specific markets. We will yet again increase the gap to the competition.”

Evolution has revised its EBITDA margin guidance for 2024, now expecting it to fall within the range of 69%-71%.

Carlesund said he looks to 2024 and beyond with “enthusiasm, hunger, and ambition.”

Similar posts