Evolution reported a slight decline of 1.2% in revenue for the second quarter, totaling €517.8 million. However, net profit rose by 1.3% to €251.4 million, benefiting from improved performance in key markets and enhanced cash flow. When adjusting for constant currency, revenue grew by 2.4% year-over-year, holding the EBITDA margin steady at 65.9%.
CEO Martin Carlesund expressed satisfaction with the quarter's results compared to the beginning of the year, stating, "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 acknowledged ongoing volatility in the region and mentioned rising cybercrime, which remains a challenge.
The European market saw a turnaround with a revenue increase of 3.5% from the previous quarter. Latin America showed remarkable growth of 26.3%, contributing €47.5 million. North America posted a 9.5% increase, attributed to the launch of live casinos. In contrast, the Asian market experienced a decline of 3.7% amid ongoing efforts to combat cybercrime.
The RNG sector maintained a strong performance with revenue reaching €80.5 million, while revenue from live casinos was down to €437.3 million. Approximately 49% of the company’s income is generated in regulated markets.
The recent settlement with Great Britain’s gambling regulator for £4.75 million marked the completion of the license approval process concerning games offered at illegal sites in the UK, further enhancing the company's standing. Evolution also reported a cash flow of €293 million and cash reserves exceeding €1.15 billion.
The company is in negotiations for the acquisition of Galaxy Gaming for $85 million, a transaction that has been under discussion since July 17.
