Evolution’s Q1 2025 Nets €520.9M with North American Surge

A Mixed Quarter with Solid Gains

“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,” said CEO Martin Carlesund.

Live casino games led the charge, raking in €448.7 million, up 4%, while RNG games added €72.3 million, up 3.1%. North America shone, with revenues jumping to €71.5 million from €62.1 million, driven by strong live game demand.

But not everything sparkled. EBITDA dipped 1.1% to €342.0 million, and the EBITDA margin slid to 65.6% from 69.0%, reflecting higher costs.

Net profit fell 5.4% to €254.7 million, with earnings per share at €1.24. Operating costs rose 15% to €217.5 million, fueled by staff expenses for new studio tables and expansion.

Carlesund flagged currency swings, cybercrime countermeasures in Asia, and proactive European market restrictions as growth speed bumps.

North America Steps Up

North America’s a bright spot for Evolution, with Carlesund noting “good momentum in North America in particular in Live.” The region’s €71.5 million revenue haul marked a solid leap, boosted by a third studio launch in New Jersey.

A second Michigan studio is slated for fall 2025, where Evolution employs about 1,000 workers, with over 85% of leadership roles filled internally.

These moves show Evolution’s betting big on the US, where demand for live dealer games like blackjack and roulette is soaring. Investments in studios and staff are paving the way for more growth, even as costs pinch margins.

Challenges and Investments

Q1 wasn’t all smooth sailing. Evolution tackled cybercrime in Asia with technical fixes, which slowed revenue growth there. In Europe, the company proactively “ring-fenced” regulated markets in February, limiting access in low-channelization areas, which hit revenues hardest.

Currency fluctuations added a €1.0 million drag on operating costs. Meanwhile, Evolution’s pouring cash into expansion: €17.0 million in tangible assets and €16.6 million in intangibles like game development.

New studios in Romania, Brazil, and the Philippines, plus over 110 new games planned for 2025, including hits like Fireball Roulette and Nolimit City’s Duck Hunters, kept costs high.

Carlesund’s clear: growth trumps margins. “We will always prioritise growth over margin,” he said, justifying investments despite short-term hiccups.

A resolved labor dispute in Georgia, cleared by an independent probe, also closed a lingering issue, letting Evolution focus forward. The company spent €154.1 million repurchasing 2.1 million shares and proposed a €2.80 per share dividend.

Looking Ahead

Evolution’s Q1 shows a company navigating tricky waters while planting seeds for a stronger second half. The 66-68% full-year EBITDA margin forecast holds, though Q2 may feel similar pressures from regulatory moves and Asia’s challenges.

North America’s momentum, paired with new games and studios, sets Evolution up for a rebound. Cash reserves at €969.2 million and €361.3 million in operating cash flow give plenty of room to keep investing.