Evolution has recorded €524.3m (£454.3m) in net revenue for Q2 2025, representing a year-on-year (YoY) climb of 3.1%, as bosses noted they were “not satisfied” with the performance.
EBITDA for the three months ending 30 June suffered a marginal fall, sitting at €345.3m, down from the €345.8m recorded in the corresponding period last year.
As a result, Evolution posted an EBITDA margin of 65.9%, also down from Q2 2024’s 68%.
Operating profit for the period declined 1.5% YoY, amounting to €306.4m, a slight decrease from the €311.1m posted in the second quarter of last year.
Breaking down the results by vertical, Evolution’s live casino segment continued to be the driving force, contributing the lion’s share of the topline figure with €453.7m.
Management said the positive display within the live casino arm stemmed from increased commission income from both existing and new customers, as the demand for content continues to rise.
RNG (random number generator) revenue climbed slightly YoY, landing at €70.6m, an increase of €300,000 compared to Q2 2024.
That total marked the lowest revenue contribution from Evolution’s RNG arm in the last five quarters.
Analysing Evolution’s Q2 2025 display by region, Asia ranked supreme, generating €209.1m.
The figure marks YoY growth of 3.6%, with the continent boosted by a live casino studio launch in the Philippines, the company’s first in that market.
However, Asia remains blighted by previous cyberattacks and hacking of Evolution’s video streams, with CEO Martin Carlesund stating the business is ramping up its efforts to deal with the issue.
He explained: “As we have stated before, it will take time, patience and resources but, as we deploy new measures constantly, we are starting to reap some benefits. The revenue for the region is back to growth and we remain very cautiously optimistic for the remainder of 2025.”
Europe followed closely behind in second, with €180.2m in revenue, though that result represented a YoY slump of 5.8%.
Carlesund said the financial impact of the ring-fencing measures had been more significant than expected outside of the UK.
These measures had been implemented so as to ensure Evolution content did not appear on black market and unlicensed sites.
The company confirmed it is in “continued dialogue” with the Gambling Commission regarding the regulator’s review of its UK licence, which was announced on 20 December last year.
Evolution noted that it is seeing “very good momentum” in the US, with efforts stateside resulting in the steepest growth of all, as revenue climbed 22.8% YoY to sit at €73.9m.
Evolution’s Latam division returned revenue of €37.6m, marking growth of 2.8% YoY.
A new live casino studio launch in São Paulo is expected to help the company establish a presence in the recently regulated market of Brazil. Other regions contributed €23.4m to group-wide revenue.
As per the company’s Q2 update, the share of Evolution’s revenue that comes from regulated markets was recorded at 44%, a five percentage point increase from the same quarter in 2024.
New studio launches led to an increase in operating expenses, which amounted to €217.9m, a notable rise from the previous year’s €197.3m in Q2.
On a H1 basis, revenue was up 3.5% to €1bn, while EBITDA was down 0.6% to €687.2m.
Reflecting on the quarter, Carlesund said: “The second quarter is more in line with our expectations given the challenges we face in Asia, and the proactive measures we are taking regarding ring-fencing in Europe.
“To be clear though, we are not satisfied with this quarter’s growth, and we are working hard to increase the pace. However, operationally speaking we are where we set out to be at the beginning of the year.”
There is optimism internally that the second half of 2025 will bring improved results and, as a result, Evolution has opted to reaffirm its guidance of a full-year EBITDA margin between 66% and 68%.
Despite the mixed performance, Evolution’s share price has ticked upwards in early trading this morning, climbing just shy of 8% to SEK830 (£6.55).
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Supplier sees revenue tick up, but operating profit falls and expenses climb, as Martin Carlesund bemoans ongoing challenges across multiple markets
The post Evolution CEO admits he is “not satisfied” with Q2 display as growth stalls first appeared on EGR Intel.