Evolution has reported revenue of €520.9m for the first quarter of 2025, showing a 3.9% year-on-year increase. Despite this, challenges such as cybersecurity measures in Asia and currency fluctuations have influenced the company’s overall financial performance. The EBITDA for the first three months dropped slightly to €342m, reflecting a margin decrease of 65.5%. Consequently, Evolution’s shares fell 18% in early trading.
In the live casino segment, revenue rose by 4% to €448.7m, benefiting from increased commissions. However, RNG revenue dropped to €72.3m, marking the lowest yield in three quarters. Regionally, Asia remained the top contributor despite minor declines, while North America showed promising growth with a new studio launch in New Jersey.
Key Points
- Q1 2025 revenue: €520.9m, up 3.9% YoY.
- EBITDA decreased by 1.1% to €342m; EBITDA margin fell to 65.5%.
- Shares dropped 18%, valued at SEK683.40 amid disappointing performance.
- Live casino segment led with €448.7m revenue, a 4% YoY increase.
- RNG revenue fell to €72.3m, though still 3% growth YoY.
- North America revenue up sharply to €71.5m due to a new studio in New Jersey.
- 45% of revenue now comes from regulated markets, up six percentage points YoY.
- Operating expenses rose to €217.5m, attributed to new studio launches and rising personnel costs.
Why should I read this?
If you’re into the gaming and tech industry, this article’s got the scoop on Evolution’s recent struggles and strategic responses. With financial shifts and cybersecurity challenges in the mix, understanding how they navigate these waters can give you insights into industry trends and the future positioning of similar companies. Plus, it’s a great way to stay ahead of what might affect your investments or interest in the sector!