Evolution’s Q2 Performance: Modest Growth Amid Profit Dip

Evolution has announced its second-quarter financial results, showing a 3.1% increase in net revenue compared to the previous year, amounting to EUR 524.3 million. Despite this revenue growth, the company’s profits saw a decrease of 7.7%, reaching EUR 248.3 million, down from EUR 269.1 million in Q2 2024.

CEO Martin Carlesund addressed the mixed results, acknowledging the challenges the company faced, particularly in the Asian market. He emphasized, however, that the figures were largely in line with expectations given the current obstacles. Carlesund further reassured investors that Evolution remains on track to meet its full-year EBITDA margin target of 66-68%.

The decline in profits was partly attributed to proactive regulatory actions in Europe, particularly the ringfencing policy, and issues related to cybercrime in Asia. While the gaming supplier has expanded into new regions such as Latin America and Asia, these efforts have led to slower-than-expected growth. Despite these hurdles, Evolution remains optimistic about its long-term prospects, as it works to enhance operational efficiency and meet its strategic goals.

The Q2 report highlights varying growth rates across Evolution’s key markets. In Europe, revenue declined by 5.8% year-on-year, totaling EUR 180.2 million. This decline was primarily due to the full impact of the ringfencing policy, which Evolution implemented in response to a UK Gambling Commission investigation. The investigation found that some of Evolution’s games were accessible through unlicensed operators, leading the company to take immediate action to limit access to these sites.

In contrast, the company reported positive growth in its Asian operations, with a 3.6% increase in revenue to EUR 209.1 million. Evolution has made substantial efforts to combat cybercrime in Asia, which has contributed to the growth in this region. The company also highlighted its new studio in the Philippines, marking a significant step in its Asian expansion.

In North America, Evolution posted impressive revenue growth of 22.8% to EUR 73.9 million. This was fueled by a new partnership with Bally’s Corporation in Rhode Island, which has opened up new avenues for growth. Additionally, the company expects the acquisition of Galaxy to close in the second half of the year, which will further enhance its market presence in North America.

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Despite the challenges faced in Q2, Evolution remains committed to its growth trajectory. The company has outlined its plans for the remainder of 2025, including the launch of 110 new games and three live casino titles in Q3. These new releases are expected to drive growth and help Evolution regain momentum in its key markets.

Moreover, Evolution opened its first Asian studio in June, marking a milestone in its efforts to establish a stronger presence in the region. The company’s new base in Brazil, coupled with recent licensing agreements, positions it well for growth in the Latin American market.

The company’s focus remains on expanding its product portfolio and securing regulatory approvals in new markets to drive future growth. Evolution’s strategy includes increasing investment in innovation, improving the player experience, and strengthening partnerships with key stakeholders across its global operations.

Source:

, July 17, 2025.