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Live Casino Gaming Surpasses €1 Billion in Profit
By Shane Addinall Feb 06, 2024 Industry2023 was an incredible year for Evolution Gaming. Their live casino division grew by nearly 30%, leading to record-breaking profits!Evolution Gaming continues to grow from strength to strength, with 2023 delivering an incredible net profit of €1.07 billion! If you are new to the online gambling space, what makes their success extraordinary is that they were the first software developers to see the value of live dealer casino games, giving credence to the adage: the riches are in the niches.
Record Breaking Commercials
According to Evolution Gaming CEO Martin Carlesund, 2023 was an incredible growth year for the market leader. The company saw their net profit line increase by 27% to the headline grabbing figure of €1.07 billion. To put this in perspective, the Netherlands' Gross Domestic Product (GDP) was approximately €1.04 billion for the same period!
What was surprising is that this level of success was achieved while the company fell well short of its intended development and expansion goals:
Quote“Investments in 2023 amounted to €94 million, which was below our guidance of €120 million 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 million.”
Despite this, Evolution ended the year on a high, with Q4 gaming revenue up by 16.6% to an incredible €475.3 million. This figure was split across Europe (€185.8 million), Asia (€181.7 million), North America (€59.1 million), Latin America (€32.1 million) and several smaller regions totalling €16.6 million.
Live Casino Leads the Charge
While Evolution Gaming now offers both RNG and live casino games, the CEO confirmed that 84.7% of its 1.80 billion 2023 revenue came from its live casino division. This equates to €1.52 billion, an increase of 28.1% from the previous year.
Commenting on their results, Carlesund said:
Quote“As a company, Evolution remains profitable, strong, and all-equity financed. As we look into 2024 and beyond, we do so with excitement, hunger, and ambition.”
In contrast, the revenue generated by Online Slots and table games only grew by 2.6% to €275.3 million.
The financial report broke down the cost of doing business in the gaming sector as follows: operating expenses (€688.9 million), financial items costs (€5.9 million), and total taxes (€77.7 million) leaving them with a net profit of more than €1 billion.
Sights Set on a Spectacular 2024
With a clear understanding of the online casino market's appetite for more live casino games and experiences, Evolution Gaming is set for a bumper new year.
Speaking on the demand for live dealer products, Carlesund said:
Quote“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 locations.”
Carelsund revealed that, based on the incredible Q4 2023 company performance, the decision had been made to increase the projected EBITDA (earnings before interest, taxes, depreciation, and amortisation) range to 69%- 71%.
This decision will be supported by increased studio and streaming venue expansions in 2024. A new studio location was launched in Bulgaria, and an additional site is underway in Colombia. Carlesund has confirmed that they have plans to launch at least four more studios this year!
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