Evolution reports 3.9% Q1 revenue increase to €520.9m
The result pairs with year-on-year decreases in both EBITDA and profits.
Key points:
– Evolution has reported a revenue increase of 3.9% to €520.9m year-on-year for Q1 2025
– Both profits and EBITDA have been subject to decreases year-on-year
– Asia was Evolution’s largest market for the quarter, followed by Europe
Evolution has reported a Q1 2025 revenue figure of €520.9m ($592.1m), representing a rise of 3.9% when compared to results from the year prior.
Despite this positive incline in revenue, both profits and EBITDA have fallen in comparison to results from the first quarter of 2024, dropping 5.4% and 1.1%, respectively. Indeed, these results come from a quarter within which the company launched two new studios in the North American and EU markets – as well as initiating its share repurchase program.
Q1 2025 financials
In more detail, Evolution’s Q1 2025 adjusted EBITDA had fallen 1.1% year-on-year to total €341.98m, paired with an EBITDA margin of 65.6% – down from 69% last year. Elsewhere, profits fell by a slightly more notable figure of 5.4%, settling at €254.7m with a margin of 48.9%. Evolution’s profit margin for Q1 2024 also fell slightly year-on-year from 53.7% to 48.9%.
Adjusted EBITDA excluding other operating revenues also dropped, down 1.1% to €341.97m, while earnings per share before dilution fell by 2.8% year-on-year to €1.24.
Live gaming accounted for the vast majority of Evolution’s revenue share, generating a figure of €448.7m – up 3.9% year-on-year, with RNG accounting for the remaining €72.3m.
Regionally, Asia was the company’s key revenue driver for Q1 2025, accounting for €201.9m of the overall revenue figure, a rise of 2.2% year-on-year – however, a slight decline from the €202.2m reported during Q4 2024. Asia was very closely trailed by the European market, which generated a revenue figure of €189.7m – down €0.3m from the €191m reported during the first quarter of 2024.
Q1 2025 highlights
During the first quarter of 2025, Evolution initiated a phase of global expansion which saw the supplier open its third studio in New Jersey – alongside its second in Romania. This move was followed by the initiation of its share repurchasing program.
Also during Q1, the company was subject to some legal scrutiny, as its licence fell under investigation by the UK’s Gambling Commission during February, prompting a sudden drop in share price. More recently, in March, Evolution entered into a new content integration partnership with Hard Rock.
Good to know: Evolution reported a FY 2024 revenue figure of €2.06bn
CEOs comments
Speaking on these latest results, Evolution CEO, Martin Carlesund, stated: “The decelerated growth rate in the quarter is not only impacted by the development of the currency rates but also connected to conscious actions we have taken that will be beneficial for the business in the longer term.
“Firstly, we are addressing the ongoing issues in Asia where we are implementing technical countermeasures to stop the criminal cyber activity, which has put pressure on revenue growth. Secondly, and on top of what we have already done in the UK to meet regulatory requirements, we have taken proactive and self-initiated actions in February to ring-fence additional regulated markets in Europe. The effects have varied, with the largest negative revenue impact in markets where channelisation is low.
“We have had constructive dialogues with all the large European regulators in the quarter and continue to support them in the ways that we can. However, it is important to remember that channelisation is primarily dependent on factors outside of our control, i.e. the ways in which the regulatory parameters are structured.
“To create a long-term sustainable regulatory environment in which the end-users are protected while also having an entertaining gaming experience is a balance of those parameters. The long-term picture remains intact: Regulation is positive and attracts new end-users over time, but regulation must be done in a way that serves the needs of the players in each country. As a consequence of the above, the profitability for the first quarter is on the low side. We believe that the actions we are taking also will impact the second quarter, but that the second half of the year will be stronger.”
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