Evolution CEO “not happy” with Q1 performance as shares slide

Evolution has reported revenue of €520.9m for the first quarter of 2025, marking a 3.9% year-on-year (YoY) uptick from the €501.5m posted last year. 

Management noted that “conscious actions” taken by the company to address ongoing issues, such as countermeasures to prevent cyber-crime within its Asia division, have impacted the supplier’s topline figure.

Bosses also said currency rate developments and its rollout of geo-fencing across regulated markets in Europe had also had an effect.

However, these efforts are expected to be “beneficial” in the long-term. 

EBITDA for the three months ending 31 March decreased 1.1%, sitting at €342m, a slight fall against the €345.8m generated in the corresponding period of 2024. 

In turn, Evolution recorded an EBITDA margin of 65.5%, down from last year’s 69%. 

The slim increase in revenue and fall in EBITDA has had an impact on the supplier’s share price, with Evolution stock down 18% in early trading, valued at SEK683.40 at the time of writing. 

Analysing Evolution’s revenue by vertical, its live casino segment contributed the lion’s share with €448.7m, a 4% YoY increase on the €431.3m posted for the first three months of last year. 

Live casino’s positive trajectory was due to “increased commission income from existing customers”, according to Evolution.

RNG revenue was recorded at €72.3m, the lowest the vertical has produced over the last three quarters, though the division still reported 3% growth YoY. 

Breaking revenue down by region, Asia took the top spot, having amassed a total of €201.9m, though that marked a marginal decrease from the €202m posted in the two preceding quarters as the firm continues to get to grips with cybersecurity issues in the region. 

Europe ranked second, having generated €189.7m in revenue over the course of Q1, representing its lowest figure in the last five quarters, largely due to ring-fencing measures taken by the company.

However, efforts stateside continued to prove fruitful, with Evolution’s North America arm generating €71.5m in revenue, a marked improvement on the €62.1m produced in Q1 2024, aided by the launch of a new studio in New Jersey. 

Evolution’s Latam division totalled €36.2m, while the supplier’s other regions contributed €21.6m. 

The share of the group’s revenue that stems from regulated markets continued to trend upwards at 45%, representing a six percentage point increase compared to the same reporting period last year. 

Meanwhile, operating expenses came to €217.5m, up from €189.8m in Q1 2024, largely due to the launch of new tables in Evolution’s studios and the increase in personnel costs.

Operating profit fell 2.6% from €311.6m in the opening exchanges of last year to now sit at €303.4m. 

Evolution CEO Martin Carlesund reflected on the first quarter of 2025, noting: “Needless to say, I am not happy with the financial development in the quarter, but one must take into account that the results are impacted by necessary steps that contribute to our mission to ever increase the gap to competition.  

“It takes hard work in all areas; staying ahead in the ever-changing regulatory landscape, being an attractive employer around the globe, moving our technology to the cutting edge and offering the best product in the world.  

“The road cannot always be straight, but what is crucial is that we learn from the challenges we face and relentlessly adapt and strive to make Evolution a little bit better every day.” 

The post Evolution CEO “not happy” with Q1 performance as shares slide first appeared on EGR Intel.

 Supplier sees revenue for the first quarter climb slightly by 3.9%, while earnings decrease in comparison to last year as firm takes new measures to strengthen long-term
The post Evolution CEO “not happy” with Q1 performance as shares slide first appeared on EGR Intel.