Evolution reported a 1.2% decline in revenue for the second quarter, totaling €517.8 million. Despite this drop, net profit rose by 1.3% to €251.4 million, driven by enhanced performance in key markets and improved cash flow generation. When adjusted for constant currency, revenue saw a growth of 2.4% compared to the previous year, with the EBITDA margin remaining stable at 65.9%.
CEO Martin Carlesund remarked that the company had a stronger quarter than it did at the beginning of the year. "Overall, I am happy with the performance in the quarter. 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," he stated. He acknowledged the ongoing volatility in the region and noted that rising cybercrime activity has posed challenges that could not be completely mitigated by the otherwise favorable trends.
In Europe, revenue bounced back with a 3.5% increase versus the previous quarter, while Latin America experienced impressive growth at 26.3%, bringing revenue to €47.5 million. North America also saw a 9.5% increase, attributed to the introduction of live casinos. However, the Asian market remains problematic, suffering a 3.7% drop in revenues as it continues to grapple with cybercrime issues.
The RNG sector has remained robust for the company with revenues reaching €80.5 million, although revenues from live casinos fell to €437.3 million. Notably, almost 49% of their income comes from regulated markets.
Furthermore, the company benefitted from the recent £4.75 million settlement with the UK gambling regulator, which facilitated the completion of the license approval process for games previously offered on illegal sites. Data released indicated cash flow of €293 million and cash reserves exceeding €1.15 billion. Evolution is also in discussions over an $85 million acquisition deal with Galaxy Gaming, which has been ongoing since July 17.
