Evolution posted a 1.2% year-on-year fall in second-quarter revenue as continued weakness in Europe and Asia offset growth elsewhere, although the supplier said improving momentum and disciplined cost control left it encouraged by the quarter’s performance.

For the three months to 30 June, net revenue amounted to €517.8m, down from €524.3m in Q2 2025. This drop was driven primarily by weaker performance in Asia and Europe, where revenue declined year-on-year by 8.9% and 4%, respectively.

However, CEO Martin Carlesund said that Europe had shown signs of recovery after “several quarters of decline”. He said the region was showing encouraging signs, citing increasing activity in regulated markets and continued demand for native-speaking live casino tables.

Despite the year-on-year drop, revenue in Europe was 3.5% higher quarter-on-quarter in terms of net revenue by players’ IP addresses per geographical region, rising to €173.0m.

“Following several quarters of decline, Europe returned to quarter-on-quarter growth,” Carlesund said. “We remain cautious about the low channelisation rates, but the quarter otherwise showed encouraging activity in several markets, with strong development in the game show category and continued demand for native-speaking tables.

“We have seen an increasing activity in [European] regulated markets. Whether we have had an inflection point, it’s too early to say.”

Growth outside Europe

Outside Europe, which remains Evolution’s primary source of revenue by some margin, Latin America again led the way, with revenue rising 26.3% year-on-year to €47.5m. The supplier said momentum was supported by the relaunch of its newly acquired studio in Argentina and the launch of a localised version of Ice Fishing in Brazil.

North America also continued its steady growth, with revenue increasing 9.5% to €81m. During the quarter, Evolution rolled out Monopoly Live across four US states, opened its second studio in Michigan and, after the reporting period, expanded into Alberta following the Canadian province’s transition to a regulated commercial online gaming market.

Asia remained the weakest-performing region, with revenue down 8.9% year-on-year and 3.7% quarter-on-quarter to €190.5m. Carlesund attributed the slowdown to increased cybercrime activity, although he said the underlying business remained resilient.

“We have said it before that this is a cat-and-mouse game, and the volatility will remain. But we are not stressed,” he said during an earnings call. “We know what the challenge is, we will continue to battle it, and we look forward to see where we stand in the next quarter.”

Elsewhere, revenue from Africa and other markets increased 10.3% year-on-year to €25.8m, with Evolution reporting continued growth in both its Live Casino and RNG operations.

For the business as a whole, €437.3m of overall revenue came from live operations, down 3.6% year-on-year. On the other hand, RNG revenue climbed 14.0% to €80.5m.

Net profit edges up despite revenue dip

In terms of profit performance, higher operating expenses coupled with lower revenue meant operating profit slipped 2.8% year-on-year to €297.8m.

However, a €3.1m gain from financial items – compared to last year’s €11.9m loss – meant pre-tax profit climbed 2.2% to €300.9m.

Evolution paid €49.4m in tax, leaving a net profit of €251.4m, an increase of 1.3%. However, EBITDA for the period was 1.2% lower at €341.0m.

Looking at the first half as a whole, net revenue declined 1.4% to €1.03bn, with EBITDA also down by 1.6% to €676.3m. Operating profit dropped 8.1% to €560.4m but pre-tax profit was up 0.7% to €601.0m and net profit edged up by 0.1% to €503.4m.

“To conclude: the road is almost never straight, but what matters is that we are moving forward,” Carlesund said. “Some curves are harder than others, but they can also be fun. And the same goes for Evolution. It is great, fun work, and we are always moving forward. 

“I am pleased with the progress we are making across the business, and this is above all thanks to the great work, energy and commitment of everyone at Evolution. With that, I look forward to the remainder of the year.”

Evolution prepares for £4.75m UKGC settlement

In the report, Evolution made reference to this week’s news that it had agreed a settlement with the UK Gambling Commission over its licence review.

The supplier said the matter resulted from the finding that Evolution games – in breach of its terms of supply – were available via two operators on six websites offering content to consumers without a UK licence.

It agreed a £4.75m settlement with the regulator – though as this was arranged after Q2, it did not have an impact on the quarterly performance. 

Share