Evolution has reported its financial results for the first quarter of 2025, posting net revenues of €520.9 million, an increase of 3.9% compared to €501.5 million in Q1 2024. EBITDA for the quarter declined slightly by 1.1% to €342.0 million, with a margin of 65.6%, down from 69.0% in the prior-year period.
Profit for the period totalled €254.7 million, a decrease of 5.4% compared to €269.2 million a year earlier. Earnings per share before dilution fell to €1.24, compared to €1.27 in Q1 2024.
During the quarter, Evolution undertook several operational initiatives, including the launch of its third studio in New Jersey and second studio in Romania, aimed at supporting expansion in regulated igaming markets. The company also initiated a share repurchase programme, acquiring 2.1 million shares during the period.
In addition, Evolution reported taking self-initiated steps to strengthen compliance and operational frameworks in regulated European markets. These measures are part of the group’s ongoing efforts to align with jurisdictional requirements while continuing to scale its live casino and RNG offerings globally.
Evolution’s full-year trailing figures as of March 2025 show net revenues of €2.08 billion and a profit of €1.23 billion, with a rolling EBITDA margin of 69.8%. The company’s outlook remains focused on operational efficiency and market alignment amid regulatory developments in key igaming jurisdictions.
Comments from CEO Martin Carlesund: “For the first quarter of 2025, Evolution reports net revenues of EUR 520.9 million and EBITDA of EUR 342.0 million, corresponding to year-on-year revenue growth of 3.9 percent and an EBITDA margin of 65.6 percent. Revenue growth at constant currency is estimated to be 6.1 percent.
“The decelerated growth rate in the quarter is not only impacted by the development of the currency rates but also connected to conscious actions we have taken that will be beneficial for the business in the longer term. Firstly, we are addressing the ongoing issues in Asia where we are implementing technical countermeasures to stop the criminal cyber activity, which has put pressure on revenue growth. Secondly, and on top of what we have already done in the UK to meet regulatory requirements, we have taken proactive and self-initiated actions in February to ring-fence additional regulated markets in Europe. The effects have varied, with the largest negative revenue impact in markets where channelisation is low. We have had constructive dialogues with all the large European regulators in the quarter and continue to support them in the ways that we can. However, it is important to remember that channelisation is primarily dependent on factors outside of our control, i.e. the ways in which the regulatory parameters are structured. To create a long-term sustainable regulatory environment in which the end-users are protected while also having an entertaining gaming experience is a balance of those parameters. The long-term picture remains intact: Regulation is positive and attracts new end-users over time, but regulation must be done in a way that serves the needs of the players in each country.
“As a consequence of the above, the profitability for the first quarter is on the low side. We believe that the actions we are taking also will impact the second quarter, but that the second half of the year will be stronger. We therefore keep our full-year estimate of an EBITDA margin of 66 to 68 percent. In this context, I would like to reiterate our stance that we will always prioritise growth over margin which is why we are continuing to invest also in times when we see short-term disturbances to our business.
“For 2025, we have the strongest product roadmap ever with more than 110 new releases that will further strengthen our world-leading portfolio. Many of the headline games were showcased at ICE in Barcelona in January with great reception from operators. Among the successful launches already in the first quarter are Race Track and War, followed by the highly anticipated game show Marble Race in the beginning of the second quarter, as well as Fireball Roulette which is officially launched today. From our RNG brands, a total of 17 new games have been launched in the quarter. Nolimit City’s Duck Hunters stands out as one of the best slot releases we have seen in years. Looking at upcoming releases, I would specifically want to highlight Ice Fishing, set for launch this summer. It is unlike any other game show that we have created and has already created a buzz in the industry.
“Our Live Casino offering exhibited 4 percent growth year-on-year. Despite the effects from the ring-fencing and the cyber-attack countermeasures, the underlying potential in both Europe and Asia remains solid. North America continues to perform well, and in Latin America, our Colombian studio that opened in 2024 is developing very well with increasing demand from Spanish-speaking markets. We also believe activity in the region will increase supported by the new regulation in Brazil. It can be noted that we have seen a jump in the total share of net revenues from regulated markets which now stands at 45 percent. To meet the global demand, we continue to invest in studios. In the first quarter, we have launched a second studio in Romania and a third studio in New Jersey. The studio projects in Brazil and in the Philippines are on track for launch in the second half of 2025. We will also open a second studio in Michigan, USA during autumn.
“In our RNG portfolio, Nolimit City continues to be one of the strongest slot brands in the world right now, whereas we can grow more in our other brands in the RNG space. Overall, the RNG growth was 3 percent year-on year.
“Our studio in Georgia continues to operate without disruptions but with reduced capacity. During the first quarter, one of the Big Four accounting firms has conducted an independent investigation of the Georgian operations, based on the allegations that were spread in connection with the strike last year. The conclusions of that investigation have been summarised in a report that clearly substantiates all that Evolution stated during and after the strike on a range of issues including salary levels, strike participation and workplace environment. This third-party report has now been distributed to the unions and relevant authorities, and for Evolution, the strike is now a closed chapter.
“The Evolution team now numbers more than 22,000 employees all over the world. The majority of our young employees take their first step into the labour market with us, and we take pride in offering them a great workplace with competitive benefits and significant career development opportunities. As an example, in our Michigan operations, we employ about 1,000 employees, and more than 85 percent of the supervisor and manager vacancies are filled by internal promotions.
“Needless to say, I am not happy with the financial development in the quarter, but one must take into account that the results are impacted by necessary steps that contribute to our mission to ever increase the gap to competition. It takes hard work in all areas; staying ahead in the ever-changing regulatory landscape, being an attractive employer around the globe, moving our technology to the cutting edge and offering the best product in the world. The road cannot always be straight, but what is crucial is that we learn from the challenges we face and relentlessly adapt and strive to make Evolution a little bit better every day.”
