Evolution has reported a small fall in second-quarter revenue, although higher profit, stronger cash generation and renewed growth in Europe offered signs of improvement from a first quarter in which revenue and EBITDA declined year on year.
Net revenue for the live casino supplier fell 1.2 per cent to €517.8m in the three months to June, from €524.3m a year earlier. Earnings before interest, tax, depreciation and amortisation dropped at the same rate to €341m, leaving the EBITDA margin unchanged at 65.9 per cent. Profit rose 1.3 per cent to €251.4m, while earnings per share increased from €1.22 to €1.27. On a constant-currency basis, revenue grew by an estimated 2.4 per cent.
“Overall, I am happy with the performance in the quarter,” chief executive Martin Carlesund said. “Revenue and margin are moving in the right direction compared to the first quarter, cost control remains strong, cash flow is improving, and we continue to expand in key markets while executing on our product roadmap.”
The figures improved slightly on the first quarter, when revenue was €513m and the EBITDA margin stood at 65.4 per cent. They also continue the subdued top-line pattern seen through 2025, when the company’s annual net revenue edged up only 0.2 per cent. Earlier this year, Evolution said it was prioritising investment and expansion while contending with regulatory changes, cybercrime and pressure in parts of Europe and Asia.
Europe returns to quarterly growth
Europe, which had weighed on recent results, grew 3.5 per cent from the previous quarter when measured by players’ IP addresses. Revenue from the region reached €173m, still below the €180.2m recorded a year earlier. Carlesund said the company remained cautious about low channelisation rates, but pointed to stronger game-show activity and continued demand for native-speaking tables.
Latin America was the fastest-growing major region, with revenue up 26.3 per cent year on year to €47.5m. Evolution relaunched its recently acquired studio in Argentina and introduced a local version of Ice Fishing in Brazil. North American revenue rose 9.5 per cent to €81m, helped by the launch of Monopoly Live in four US states and the opening of a second Michigan studio.
Asia moved in the opposite direction. Revenue fell 3.7 per cent from the first quarter to €190.5m, although it remained the company’s largest region by player location.
“The region remains volatile as earlier stated, and increased cybercrime activity could not be fully offset by otherwise relatively favourable development,” Carlesund said. “The volatility is something we continue to work through.”
RNG games provided another bright spot. Revenue from the division rose to €80.5m from €70.6m, while live casino revenue declined to €437.3m from €453.7m. The share of revenue generated in regulated markets increased to 49 per cent from 44 per cent a year earlier.
Settlement closes UK review
The results came two days after Evolution agreed a GBP 4.75m (about €5.58m) settlement with the UK Gambling Commission, ending a licence review opened in December 2024. The case concerned Evolution games appearing on six websites that were not licensed to serve British customers. The company’s UK operating licence remains in place.
“We acted immediately when this was identified, and the review found no broader pattern of unlicensed access in the UK,” Carlesund said.
Evolution spent €303.2m repurchasing 5.14m shares during the quarter, as part of a programme intended to reduce its share capital and return surplus funds to investors. Operating cash flow rose to €293m from €225.3m, and cash and cash equivalents more than doubled year on year to €1.15bn.
Separately, Evolution said the closing period for its proposed $85m (€74.3m) acquisition of US-based Galaxy Gaming expired on 17 July, after two years of regulatory and administrative delays. From 18 July, either party may choose to terminate the agreement. Despite the uncertainty, Carlesund said the deal was not material to Evolution and that its outcome would not affect the group’s US operations or long-term plans.
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