Betting Big, Winning Bigger
The essence of casino games?
The house always wins.
And that’s exactly why Evolution AB published great results yesterday.
The stock jumped 6% higher on the news.
Evolution AB
Evolution Gaming is a company that creates live casino games for online gambling platforms.
They specialize in developing and streaming live dealer games like roulette, blackjack, and poker, offering an immersive and interactive experience for online players. Their focus on live-streamed gaming has made them a leader in the online casino industry.
2023 Results
It’s great to see that one of our Top Picks published great results.
The company grew by more than 25% in 2023. That’s amazing, right?
Here are some key takeaways:
Results
Revenue: €1,798.6 million (+23.5%)
EBITDA: €1,267.4 million (+25.7%)
Earnings Per Share: €5.01 (+26.8%)
Operating Margin: 63.5% (+1.2%)
Evolution AB published these great results despite currency headwinds, which makes it even more remarkable
New games
110 New games were added to their portfolio (initial target: 100 games)
Outlook 2024
The guidance for the EBITDA margin was raised to 69-71%
Evolution AB will increase the pace of its investments in future growth (growth = key priority)
“We come into 2024-2025 with higher ambitions than ever.”
Share repurchases
In Q4 a total of 1,126,899 own shares were acquired (0.5% of outstanding shares)
They introduced a share repurchase program of €400 million (1.6% of outstanding shares at the current stock price)
We love to see that Evolution AB is buying back shares at these valuation levels
Dividend
Evolution AB will pay a dividend of €2.65 per share
The company wants to pay out 50% of its profits as dividends annually
Update investment case
Today, Evolution AB trades at 1,290 SEK.
We bought it in October for 920 SEK per price.
This means the stock is up 40% since we first bought it.
Is the stock still interesting today? Let’s update our investment case.