Evolution reported a minor revenue decline of 1.2% for the second quarter, totaling €517.8 million, while net profit increased by 1.3% to €251.4 million. This growth was supported by enhanced performance in crucial markets and improved cash flow.
In constant currency terms, revenue grew by 2.4% year-on-year, with the EBITDA margin stable at 65.9%. CEO Martin Carlesund noted that the company had a better quarter compared to earlier in the year.
"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 said. He mentioned that the region remains volatile and that increased cybercrime activity has not been entirely mitigated by otherwise positive developments.
The European market showed signs of recovery, with revenues rising by 3.5% from the previous quarter. Latin America experienced impressive growth of 26.3%, generating €47.5 million in revenue. North America, buoyed by the launch of live casinos, saw a revenue increase of 9.5%. However, the Asian market remains inconsistent, demonstrating a revenue drop of 3.7% amid ongoing cybercrime challenges.
The RNG sector continued to perform well, bringing in €80.5 million, while live casino revenue fell to €437.3 million. Almost 49% of the company’s income is derived from regulated markets.
The company’s recent settlement of £4.75 million with the UK gambling regulator, which resolved the licensing approval process for games previously offered on illegal sites, bolstered its performance.
Evolution reported a cash flow of €293 million and cash reserves exceeding €1.15 billion. Also, the negotiation for the acquisition of Galaxy Gaming, valued at $85 million, has been ongoing since July 17.
