The year 2023 was a period of growth for Evolution, with live casino being a major contributor to the company’s revenue. Live casino accounted for 84.7% of the total revenue of €1.80bn generated in 2023. As interest in live casino continues to increase worldwide, Evolution has seen significant growth in this area. However, CEO Martin Carlesund has expressed concerns about the company’s ability to keep up with the demand.
In response to these concerns, Carlesund has committed to opening new games studios in various locations around the world. In addition to the recently launched facility in Bulgaria, Evolution plans to open at least four more studios in 2024. These expansions are aimed at meeting the strong demand for live casino products globally.
Looking at the financial results for 2024, the revenue increased by 23.5% compared to the previous year. Live casino revenue experienced the highest growth, with a 28.1% increase to €1.52bn, driven by increased commission income from both new and existing customers. RNG revenue also saw a modest increase of 2.6% to €275.3m.
Operating expenses were 25.6% higher at €688.9m, reflecting increased spending in all areas. However, the revenue growth had a positive impact on the operating profit, which increased by 25.9% to €1.14bn. After considering financial costs and paying taxes, Evolution’s net profit for 2024 reached €1.07bn, representing a 27.0% increase. The EBITDA also increased by 25.7% to €1.27bn.
During the fourth quarter of 2024, Evolution experienced a busy period contributing to its overall success for the year. The revenue for the quarter increased by 16.6% to €475.3m. Live casino revenue in Q4 saw the highest growth, with a 21.1% increase to €405.6m. However, RNG revenue declined by 3.7% to €69.8m.
Europe remained the core market for Evolution, generating revenue of €185.8m in Q4, a rise of 9.3%. Asia closely followed with total revenue of €181.7m. North America contributed €59.1m, Latin America €32.1m, and other areas €16.6m to the Q4 revenue. Evolution highlighted that 40% of the Q4 revenue came from regulated markets.
Evolution faced a class action lawsuit during the reported period, alleging the supplier deceived investors regarding its growth trajectory and compliance. This lawsuit represents entities that purchased Evolution shares between 14 February 2019 and 25 October 2023. The suit claims that Evolution made false or misleading statements regarding growth potential, customer compliance, compliance, and its impact on revenue. The aim of the suit is to recover damages for all investors within the specified period. Both CEO Martin Carlesund and CFO Jacob Kaplan are named as defendants in this lawsuit.
