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Evolution Interim / Quarterly Report 2025
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Interim / Quarterly Report
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Evolution
- EST 2006 -
B2B INDUSTRY
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€27,135.41
Northern • Eastern
Interim report | January–June 2025 | Evolution AB (publ)
Second quarter of 2025 (Q2 2024)
- Net revenues increased by 3.1% to EUR 524.3 million (508.4)
- EBITDA amounted to EUR 345.3 million (345.8), corresponding to a margin of 65.9% (68.0)
- Profit for the period amounted to EUR 248.3 million (269.1)
- Earnings per share amounted to EUR 1.22 (1.28)
January-June 2025 (1H 2024)
- Net revenues increased by 3.5% to EUR 1,045.2 million (1,009.9)
- EBITDA amounted to EUR 687.2 million (691.6), corresponding to a margin of 65.8% (68.5)
- Profit for the period amounted to EUR 503.0 million (538.3)
- Earnings per share amounted to EUR 2.46 (2.55)
Events during the second quarter of 2025
- Studio launched in the Philippines, first-ever live casino studio in Asia.
Events after the reporting period
- Entered Rhode Island in the US with online slot games.
- Agreement with Hasbro, to be their exclusive licensing partner for online live casino and slot games.
- Studio launched in São Paulo, Brazil.
Summary of the second quarter and first six months of 2025
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | % | Jan-Jun 2025 | Jan-Jun 2024 | % | Jul 2024–Jun 2025 | Jan-Dec 2024 | % |
|---|---|---|---|---|---|---|---|---|---|
| Net revenues | 524,269 | 508,410 | 3.1% | 1,045,213 | 1,009,861 | 3.5% | 2,098,437 | 2,063,085 | 1.7% |
| Other operating revenues | - | - | - | - | - | - | 151,058 | 151,058 | 0.0% |
| Total operating revenues | 524,269 | 508,410 | 3.1% | 1,045,213 | 1,009,861 | 3.5% | 2,249,495 | 2,214,143 | 1.6% |
| EBITDA | 345,267 | 345,767 | -0.1% | 687,243 | 691,553 | -0.6% | 1,557,465 | 1,561,775 | -0.3% |
| EBITDA margin | 65.9% | 68.0% | - | 65.8% | 68.5% | - | 69.2% | 70.5% | - |
| Adj. EBITDA excl. other operating revenues | 345,267 | 345,767 | -0.1% | 687,243 | 691,553 | -0.6% | 1,406,407 | 1,410,717 | -0.3% |
| Adj. EBITDA margin excl. other operating revenues | 65.9% | 68.0% | - | 65.8% | 68.5% | - | 67.0% | 68.4% | - |
| Profit for the period | 248,317 | 269,143 | -7.7% | 502,986 | 538,300 | -6.6% | 1,208,701 | 1,244,015 | -2.8% |
| Profit margin | 47.4% | 52.9% | - | 48.1% | 53.3% | - | 53.7% | 56.2% | - |
| Earnings per share before dilution, EUR | 1.22 | 1.28 | -4.5% | 2.46 | 2.55 | -3.6% | 5.86 | 5.94 | -1.3% |
Evolution develops, produces, markets and licenses fully integrated B2B Online Casino solutions to gaming operators. Since its inception in 2006, Evolution has developed into a leading B2B provider with 800+ operators among its customers. The group currently employs 22,200+ people in studios across Europe and in North and South America. The parent company is based in Sweden and listed on Nasdaq Stockholm with the ticker EVO. Visit www.evolution.com for more information. Evolution is licensed and regulated by the Malta Gaming Authority under license MGA/B2B/187/2010. Evolution is also licensed and regulated in many other jurisdictions such as the United Kingdom, Belgium, Canada, Romania, South Africa, and others.
Evolution
CEO's comments
For the second quarter of 2025, Evolution reports net revenues of EUR 524.3 million and EBITDA of EUR 345.3 million, corresponding to a year-on-year revenue growth of 3.1 percent, a quarter-on-quarter growth of 0.6 percent, and an EBITDA margin of 65.9 percent. Revenue growth at constant currency is estimated to be 8.8 percent.
In the first quarter Evolution reported a deceleration of the growth rate year-on-year, mainly due to proactive and conscious actions that permit us to stay ahead of the curve in the regulatory landscape. The second quarter is more in line with our expectations given the challenges we face in Asia, and the proactive measures we are taking regarding ring-fencing in Europe. To be clear though, we are not satisfied with this quarter's growth, and we are working hard to increase the pace. However, operationally speaking we are where we set out to be at the beginning of the year.
We continue to address the ongoing issues with cybercrime and the hijacking of our video streams in Asia, where we are continuously moving forward. Other businesses, not only those in Online Gaming, are facing similar challenges, and we know that we are in the absolute technological forefront in defending our intellectual property and our products. As we have stated before it will take time, patience and resources but as we deploy new measures constantly, we are starting to reap some benefits. The revenue for the region is back to growth and we remain very cautiously optimistic for the remainder of 2025. We remain fully committed to ensuring that we receive payment for our innovations and our dedication to providing groundbreaking games to the market.
In Europe we report another quarter with negative growth compared both year-on-year and quarter-on-quarter due to the ring-fencing we did earlier this year. Although the ring-fencing measures may have had a larger financial impact than anticipated outside of the UK, we maintain that regulation is positive over time, but that the structure of the regulatory parameters is vital. A too heavily regulated market will cause a decrease in player protection and a reduced market for regulated companies, while a balanced regulatory environment will serve both player protection requirements and sustain a healthy market. These regulatory adaptations will affect the entire online gambling industry, but as we are leading by taking proactive initiatives, we are ahead of the curve and of the game.
North America maintains very good momentum, and we continue to expand our offerings as well as our US studio network with the planning of a new studio in Grand Rapids, Michigan.
In Latin America we remain highly optimistic in terms of market opportunities in the medium to long-term, but we also recognize that it will take time for operators as well as for players to get used to the new regulations in Brazil. On this journey we are very happy to announce that we today opened our Studio in São Paulo and look forward to it accelerating our growth in Brazil.
In summary, we continue to see somewhat modest figures for the second quarter, however they are more in line with our expectations, as communicated in the first quarter. Our belief that the second half of the year will be stronger remains and therefore we keep our full-year estimate of an EBITDA margin of 66-68 percent.
Our Live Casino offering reports a 3.6 percent growth rate year-on-year and a good 1.6 percent growth rate quarter-on-quarter, showcasing that the underlying growth remains intact as does our ability to seize these opportunities. In our RNG portfolio, Nolimit City continues to be one of the strongest brands, while we have the potential for future growth for our other brands in the RNG segment. For the quarter RNG revenues are up by a modest 0.3 percent, affected by one of the largest pay-outs ever for us in RNG.
For 2025, we have the strongest product roadmap ever with more than 110 new releases that will further strengthen our world-leading portfolio. In the second quarter we released four new fantastic Live Casino games: Super Color Game, Lightning Bac Bo, the card game War and First Person Bac Bo. All are truly amazing games built on Evolutions trademark quality, all designed to provide an unmatched entertainment
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
experience. We have also released 20 slot games during the quarter. During the third quarter we look forward to releasing three new Live Casino games, among those Ice Fishing, a truly unique game that operators are eagerly awaiting!
Even though we are facing challenges, we meet them head on, and at the same time we continue to innovate, to develop new products, to initiate collaborations and to expand our network. We work hard to build our success and to shape our future, and the second quarter was a real testament to that.
In June we launched our first ever Asian studio – in the Philippines. It is a state-of-the-art studio that marks a significant milestone in Evolution's expansion. The Philippine Online Gaming market is very exciting, and it is the first licensed iGaming jurisdiction in Asia. The new Brazilian studio is also a state-of-the-art studio, a bit larger, and is aimed at serving a growing Brazilian market. It is a perfectly timed launch considering Brazil's transition to regulation earlier this year. These two new studios symbolize our constant strive for growth, and we warmly welcome them into the Evolution studio network!
We've expanded our partnership with Hasbro to become their exclusive global provider for onlinecasino-games based on Hasbro's iconic brands, including MONOPOLY. We are now preparing to launch MONOPOLY Live in the US. In addition we are developing three completely new live casino Hasbro-based titles as well as a number of online slot titles. This agreement reinforces our position as the leader in online casino entertainment.
We also announced yet another great new partnership agreement with Bally's Corporation in Rhode Island. This is a landmark development in our US expansion and marks Evolution's entry into the state and thus establishes a presence in all seven US states which currently offer online casino gaming.
I am not satisfied with the financial development during the first half of 2025, but I am very satisfied with how we are addressing our challenges. We take action, continue to make Evolution stronger every day, continue a world-wide expansion at the same time that we systematically and methodically handle each challenge. All of this would not be possible without the hard-working, young and fantastic team that Evolution is built on.
I look forward to the second half of 2025, and to applying our full focus toward growing our company, our footprint, and our excellence, while also raising the bar for each other – as well as for the industry.
And finally, I want to wish partners, customers, shareholders and employees a great summer!
Martin Carlesund
CEO
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Quarterly results trend
Financial performance in the second quarter of 2025
Net revenues
Net revenues amounted to EUR 524.3 million (508.4) in the second quarter, equivalent to an increase of 3.1 percent compared with the corresponding period in 2024. Revenue growth adjusted for changes in foreign exchange rates is estimated to 8.8 percent compared with the same period the preceding year. EUR 453.7 million (438.1) of the revenue was derived from live games and EUR 70.6 million (70.3) from RNG games. The positive revenue development within live casino mainly derives from increased commission income from existing customers and, to a certain extent, from new customers. Demand for online casino games continues to grow, partly as a result of our continuous launch of new games and variations on traditional games.
Net revenues by game type
| Group, EUR million | Apr-Jun 2024 | Jul-Sep 2024 | Oct-Dec 2024 | Jan-Mar 2025 | Apr-Jun 2025 |
|---|---|---|---|---|---|
| Live | 438.1 | 446.9 | 459.4 | 448.7 | 453.7 |
| RNG | 70.3 | 72.5 | 74.4 | 72.3 | 70.6 |
| Net revenues | 508.4 | 519.4 | 533.8 | 520.9 | 524.3 |
Expenses
Operating expenses amounted to EUR 217.9 million (197.3). The higher expenses compared to the second quarter of 2024 were mainly driven by higher costs for personnel, connected to the launch of new tables in the company's studios, and the expansion in general. The expansion has also increased other operating expenses compared with Q2 2024. Changes in foreign exchange rates affected operating expenses positively with EUR 4.6 million compared with the same period the preceding year.
Profitability
Operating profit amounted to EUR 306.4 million (311.1), corresponding to a decrease of 1.5 percent. The operating margin was 58.4 percent (61.2). The EBITDA margin was 65.9 percent (68.0).
Net financial items amounted to negative EUR 11.9 million (6.8) related to interest income, leasing interest expense and currency exchange differences. The Group's effective tax rate for the quarter amounted to 15.7
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
percent (15.3). The tax rate is influenced by the countries in which earnings are generated, which may vary slightly between reported periods. Profit for the period amounted to EUR 248.3 million (269.1). Earnings per share before dilution were EUR 1.22 (1.28).
Investments
Investments in intangible assets amounted to EUR 18.6 million (16.4) during the quarter and were mainly attributable to development of new games and technical improvements of the platform, such as new functionality. See Note 5 for information about acquisition of group companies.
Investments in property, plant and equipment amounted to EUR 14.4 million (16.2) and comprised new studio space, new gaming tables, servers and other computer equipment to meet new technical requirements and maintain capacity and performance in connection with new platform launches.
Cash and cash equivalents, financing and financial position
Cash flow from operating activities amounted to EUR 225.3 million (312.8) during the quarter. Cash flow from investing activities was negative in the amount of EUR 45.3 million (negative 35.3). Cash flow from financing activities was negative in the amount of EUR 641.0 million (negative 562.8) and included dividend to shareholders of EUR 572.5 million (559.3) and repurchase of own shares of EUR 65.4 million (-). Cash and cash equivalents amounted to EUR 505.3 million (688.7) at the end of the quarter.
First half of 2025 in brief
Net revenues
For the January-June 2025 period, net revenues amounted to EUR 1,045.2 million (1,009.9), corresponding to an increase of 3.5 percent compared with the same period in 2024. EUR 902.4 million (869.4) derived from live games and EUR 142.9 million (140.5) from RNG games. The positive revenue development within live casino mainly derives from increased commission income from both new and existing customers.
Expenses
Operating expenses amounted to EUR 435.4 million (387.1). Expenses were mainly driven by higher costs for personnel, connected to the launch of new tables and studios. The strong expansion has also increased other operating expenses compared with the previous year.
Profitability
Operating profit amounted to EUR 609.8 million (622.7) with an operating margin of 58.3 percent (61.7). The EBITDA margin was 65.8 percent (68.5).
Investments
Investments in intangible assets amounted to EUR 35.2 million (33.5). Investments in property, plant and equipment amounted to EUR 31.4 million (35.5). Change in bond portfolio and other financial assets was negative in the amount of EUR 0.7 million (negative 4.8). See Note 5 for information about acquisition of group companies.
Cash and cash equivalents, financing and financial position
Cash flow from operating activities amounted to EUR 586.7 million (614.6). Cash flow from investing activities was negative in the amount of EUR 78.5 million (negative 78.1). Cash flow from financing activities was negative in the amount of EUR 800.2 million (negative 833.6) and included dividend to shareholders of EUR 572.5 million (559.3) and repurchase of own shares of EUR 219.5 million (284.0).
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Market development
Online Casino market
The global online casino market (Live & RNG) has grown strongly in recent years and is expected to continue to be among the fastest growing gaming segments in the coming years. Evolution's growth target is to grow faster than the total global online casino market. Market growth is influenced by several underlying factors, such as technological advances with, among other things, improved hardware and increased bandwidth, the migration of land-based casinos to online environments and market regulations. Increased use of mobile devices has been a growth driver for many years, and in the quarter 73 percent (71) of the operators' GGR via Evolution's platform was generated by mobile devices. RNG is the largest vertical of the online casino market. However, to a large extent, growth is driven by Live Casino having grown in importance for most gaming operators and has become an integrated and strategically important product for them.
As a B2B supplier, Evolution has customer relationships with gaming operators, who in turn own the relationships with the end users. Generally, the gaming operators are licensed in a limited number of jurisdictions while operating in a global market and allowing play from various geographic areas. The table below shows the geographic markets from which Evolution's revenues originate. Revenues based on player activity are allocated according to the end-users' location, while revenues not based on player activity are allocated to the operator's location.
Net revenues per geographical region
| Group, EUR million | Apr-Jun 2024 | Jul-Sep 2024 | Oct-Dec 2024 | Jan-Mar 2025 | Apr-Jun 2025 |
|---|---|---|---|---|---|
| Europe | 191.3 | 194.9 | 201.8 | 189.7 | 180.2 |
| Asia | 200.7 | 202.2 | 202.2 | 201.9 | 209.1 |
| North America | 60.2 | 64.8 | 70.6 | 71.5 | 74.0 |
| LatAm | 36.6 | 37.4 | 38.5 | 36.2 | 37.6 |
| Other | 19.6 | 20.2 | 20.7 | 21.6 | 23.4 |
| Net revenues | 508.4 | 519.4 | 533.8 | 520.9 | 524.3 |
| Share of regulated markets | 39% | 39% | 41% | 45% | 44% |
| Net revenues, regulated markets | 199.4 | 204.4 | 220.4 | 233.2 | 231.9 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Other
Parent Company
The Parent Company is a holding company. Net sales for the second quarter of 2025 amounted to EUR 4.8 million (4.5) and expenses to EUR 7.0 million (4.6). Operating profit amounted to negative EUR 2.2 million (negative 0.2). Profit for the period amounted to negative EUR 30.1 million (negative 27.9). The Parent Company's cash and cash equivalents amounted to EUR 43.0 million (6.6) at the end of the period and equity amounted to EUR 2,305.3 million (2,172.5). No significant investments were made in intangible or tangible assets.
Employees
As of 30 June 2025, Evolution had 22,248 employees (21,141), corresponding to 16,311 (16,164) full-time positions. The average number of full-time equivalents for the quarter was 15,965 (15,395).
Significant risks and uncertainties
Evolution's operations are exposed to certain risks that could have a varying impact on earnings or financial position. These can be divided into industry, operational, and financial risks. When assessing the Group's future development, it is important to take into account the risk factors, alongside any opportunities for profit growth.
The development of laws and regulations relating to the supply of gaming services that Evolution provides is a central risk factor for the Group's future earnings. The legal situation in regulated markets is of particular interest and is continuously monitored and managed by the Group. Despite this, there remains a risk that, in the event of legislation being interpreted in an unfavourable or unanticipated way, Evolution's conditions for growth, profitability, and the games that may be supplied could be changed. Likewise, a favourable interpretation could have a positive impact on the Group.
One or more markets may be affected by events that may result in rapid changes in the business environment. Examples of this kind of events which could lead up to production disruption are extreme weather events, social unrest, diseases (e.g. virus outbreaks) or other macroeconomic or geopolitical events affected by external influences.
For further information about Evolution's risk exposure and handling, please see the Group's Annual Report for 2024, which is available on the company's website.
Acquisition of own shares
On 14 May 2025 it was announced that the Board of Directors of Evolution has, based on the authorisation from the Annual General Meeting 2025, resolved that the Company shall acquire its own shares. Evolution has during the period 15 May to 30 June 2025 acquired a total of 1,115,392 of its own shares within the repurchase programme. During the first six months of the year, shares were repurchased for EUR 219.5 million.
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Upcoming report dates
Interim report January-September 2025 23 October 2025
Year-end report 2025 5 February 2026
Stockholm, 17 July 2025
Martin Carlesund
CEO
For further information, please contact CFO Joakim Andersson, +46 760 44 83 30 or Head of Investor Relations Carl Linton, +46 705 08 85 75, [email protected].
Evolution AB (publ) e-mail: [email protected]
Hamngatan 11 Website: www.evolution.com
SE-111 47 Stockholm, Sweden Corporate ID: 556994-5792
Presentation for investors, analysts and the media
CEO Martin Carlesund and CFO Joakim Andersson will present the report and answer questions on Thursday 17 July 2025 at 09:00 a.m. CEST via a telephone conference. The presentation will be in English and can also be followed online.
Webcast: https://evolution.events.inderes.com/q2-report-2025/register
Teleconference: https://events.inderes.com/evolution/q2-report-2025/dial-in
Dial-in number to the teleconference will be received by registering on the link above. After the registration you will be provided phone numbers and a conference/user ID to access the conference.
This information is such that Evolution AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the contact person set out above, on 17 July 2025, at 07:30 am CEST.
This report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall apply. This report has not been subject to review by the company's independent auditor.
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Condensed consolidated income statement
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2024 |
|---|---|---|---|---|---|---|
| Revenues - Live | 453,705 | 438,071 | 902,360 | 869,409 | 1,808,685 | 1,775,734 |
| Revenues - RNG | 70,564 | 70,339 | 142,853 | 140,452 | 289,752 | 287,351 |
| Net revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,098,437 | 2,063,085 |
| Other operating revenues* | - | - | - | - | 151,058 | 151,058 |
| Total operating revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,249,495 | 2,214,143 |
| Personnel expenses | -123,560 | -111,425 | -243,509 | -218,196 | -463,148 | -437,835 |
| Depreciation, amortisation and impairments | -38,884 | -34,638 | -77,425 | -68,813 | -150,834 | -142,222 |
| Other operating expenses | -55,442 | -51,218 | -114,461 | -100,112 | -228,882 | -214,533 |
| Total operating expenses | -217,886 | -197,281 | -435,395 | -387,121 | -842,864 | -794,590 |
| Operating profit | 306,383 | 311,129 | 609,818 | 622,740 | 1,406,631 | 1,419,553 |
| Financial items | -11,879 | 6,792 | -13,125 | 12,669 | -6,423 | 19,371 |
| Profit before tax | 294,504 | 317,921 | 596,693 | 635,409 | 1,400,208 | 1,438,924 |
| Tax on profit for the period | -46,187 | -48,778 | -93,707 | -97,109 | -191,507 | -194,909 |
| Profit for the period | 248,317 | 269,143 | 502,986 | 538,300 | 1,208,701 | 1,244,015 |
| Of which attributable to: | ||||||
| Shareholders of the Parent Company | 248,317 | 269,143 | 502,986 | 538,300 | 1,208,701 | 1,244,015 |
| Average number of shares before dilution | 203,936,698 | 211,043,861 | 204,773,575 | 211,184,863 | 206,357,107 | 209,562,751 |
| Earnings per share before dilution, EUR | 1.22 | 1.28 | 2.46 | 2.55 | 5.86 | 5.94 |
| Average number of shares after dilution | 203,936,698 | 211,043,861 | 204,773,575 | 213,006,149 | 206,357,107 | 210,473,394 |
| Earnings per share after dilution, EUR | 1.22 | 1.28 | 2.46 | 2.53 | 5.86 | 5.91 |
| Operating margin | 58.4% | 61.2% | 58.3% | 61.7% | 62.5% | 64.1% |
| Effective tax rate | 15.7% | 15.3% | 15.7% | 15.3% | 13.7% | 13.5% |
*Other operating revenues was reduction of earn-out liability.
Condensed comprehensive income statement
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2024 |
|---|---|---|---|---|---|---|
| Profit for the period | 248,317 | 269,143 | 502,986 | 538,300 | 1,208,701 | 1,244,015 |
| Other comprehensive income | ||||||
| Items that may be reclassified to profit | ||||||
| Exchange differences arising from the translation of foreign operations | -68,747 | 35,305 | 43,401 | -41,062 | 24,114 | -60,349 |
| Other comprehensive income | -68,747 | 35,305 | 43,401 | -41,062 | 24,114 | -60,349 |
| Total comprehensive income for the period | 179,570 | 304,448 | 546,387 | 497,238 | 1,232,815 | 1,183,666 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Consolidated balance sheet
| Group, EUR thousands | 30/06/2025 | 30/06/2024 | 31/12/2024 |
|---|---|---|---|
| Assets | |||
| Goodwill | 2,318,073 | 2,293,096 | 2,276,524 |
| Other intangible assets | 687,350 | 697,638 | 692,399 |
| Buildings | 19,233 | 20,073 | 20,126 |
| Right of use assets | 80,519 | 69,222 | 83,673 |
| Property, plant and equipment | 150,836 | 132,455 | 147,493 |
| Bond portfolio | 101,548 | - | 100,824 |
| Other financial assets | 10,554 | 9,933 | 10,537 |
| Deferred tax assets | 11,200 | 8,146 | 9,302 |
| Total non-current assets | 3,379,313 | 3,230,563 | 3,340,878 |
| Accounts receivable | 425,379 | 358,108 | 408,985 |
| Current tax receivables | 576,222 | 447,772 | 726,601 |
| Other receivables | 27,030 | 31,730 | 31,787 |
| Prepaid expenses and accrued income | 40,574 | 42,804 | 37,047 |
| Cash and cash equivalents* | 505,255 | 688,687 | 801,474 |
| Total current assets | 1,574,460 | 1,569,101 | 2,005,894 |
| TOTAL ASSETS | 4,953,773 | 4,799,664 | 5,346,772 |
| Equity and liabilities | |||
| Share capital | 650 | 650 | 650 |
| Other capital contributed | 2,430,890 | 2,429,167 | 2,429,053 |
| Reserves | -223,900 | -248,014 | -267,301 |
| Retained earnings including profit for the period | 1,521,220 | 1,496,924 | 1,809,433 |
| Total equity | 3,728,860 | 3,678,727 | 3,971,835 |
| Deferred tax liabilities | 62,013 | 60,193 | 62,976 |
| Non-current lease liabilities | 73,720 | 63,620 | 77,394 |
| Provision for pensions | 1,652 | 1,604 | 1,610 |
| Other non-current liabilities | 118,234 | 279,848 | 129,869 |
| Total non-current liabilities | 255,619 | 405,265 | 271,849 |
| Accounts payable | 13,695 | 16,148 | 16,053 |
| Current tax liabilities | 833,455 | 586,269 | 957,241 |
| Current lease liabilities | 16,164 | 15,506 | 16,268 |
| Other current liabilities | 47,021 | 48,235 | 61,010 |
| Accrued expenses and prepaid income | 58,959 | 49,514 | 52,516 |
| Total current liabilities | 969,294 | 715,672 | 1,103,088 |
| TOTAL EQUITY AND LIABILITIES | 4,953,773 | 4,799,664 | 5,346,772 |
| *Including restricted cash for jackpot liabilities | 10,364 | 13,765 | 14,400 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Condensed consolidated changes in equity
| Group 2024, EUR thousands | Share capital | Other capital contributed | Reserves | Retained earnings | Total equity |
|---|---|---|---|---|---|
| Opening equity 01/01/2024 | 648 | 2,411,607 | -206,952 | 1,800,912 | 4,006,215 |
| Dividend | - | - | - | -559,266 | -559,266 |
| Warrants | - | -59,559 | - | 1,760 | -57,799 |
| Repurchase of own shares | - | - | - | -677,988 | -677,988 |
| New share issue | 2 | 77,005 | - | - | 77,007 |
| Profit for the period | - | - | - | 1,244,015 | 1,244,015 |
| Other comprehensive income | - | - | -60,349 | - | -60,349 |
| Closing equity 31/12/2024 | 650 | 2,429,053 | -267,301 | 1,809,433 | 3,971,835 |
| Group 2025, EUR thousands | Share capital | Other capital contributed | Reserves | Retained earnings | Total equity |
| --- | --- | --- | --- | --- | --- |
| Opening equity 01/01/2025 | 650 | 2,429,053 | -267,301 | 1,809,433 | 3,971,835 |
| Dividend | - | - | - | -572,494 | -572,494 |
| Warrants | - | 1,837 | - | 750 | 2,587 |
| Repurchase of own shares | - | - | - | -219,455 | -219,455 |
| Profit for the period | - | - | - | 502,986 | 502,986 |
| Other comprehensive income | - | - | 43,401 | - | 43,401 |
| Closing equity 30/06/2025 | 650 | 2,430,890 | -223,900 | 1,521,220 | 3,728,860 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Condensed consolidated statement of cash flow
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2024 |
|---|---|---|---|---|---|---|
| Operating profit | 306,383 | 311,129 | 609,818 | 622,740 | 1,406,631 | 1,419,553 |
| Adjustment for non-cash items: | ||||||
| Depreciation/amortisation/impairment | 38,884 | 34,638 | 77,425 | 68,813 | 150,834 | 142,222 |
| Other* | -9,998 | 842 | -13,438 | 700 | -162,199 | -148,061 |
| Interest received | 3,032 | 6,320 | 7,795 | 13,327 | 15,427 | 20,959 |
| Interest paid | -334 | 545 | -438 | -143 | -666 | -371 |
| Tax paid | -65,719 | -63,169 | -69,829 | -69,127 | -75,121 | -74,419 |
| Cash flow from operating activities before changes in working capital | 272,248 | 290,305 | 611,333 | 636,310 | 1,334,906 | 1,359,883 |
| Increase/decrease accounts receivable | -35,262 | 38,929 | -17,220 | -9,354 | -68,210 | -60,344 |
| Increase/decrease accounts payable | -3,785 | 952 | -1,883 | 2,919 | -2,322 | 2,480 |
| Increase/decrease other working capital | -7,863 | -17,413 | -5,557 | -15,288 | 8,716 | -1,015 |
| Cash flow from operating activities | 225,338 | 312,773 | 586,673 | 614,587 | 1,273,090 | 1,301,004 |
| Acquisition of intangible assets | -18,604 | -16,392 | -35,239 | -33,472 | -73,162 | -71,395 |
| Acquisition of tangible assets | -14,391 | -16,153 | -31,365 | -35,498 | -61,185 | -65,318 |
| Acquisition of subsidiary | -11,191 | -4,328 | -11,191 | -4,328 | -14,446 | -7,583 |
| Investment in bond portfolio | -60 | - | -119 | - | -100,178 | -100,059 |
| Increase/decrease other financial assets | -1,072 | 1,533 | -586 | -4,783 | 581 | -3,616 |
| Cash flow from investing activities | -45,318 | -35,340 | -78,500 | -78,081 | -248,390 | -247,971 |
| Repayment of lease liability | -4,970 | -3,417 | -10,058 | -7,815 | -20,515 | -18,272 |
| Repurchase of own shares | -65,381 | - | -219,455 | -284,033 | -613,410 | -677,988 |
| Warrants | 1,837 | -126 | 1,837 | -59,445 | 1,723 | -59,559 |
| New share issue | - | 19 | - | 77,007 | - | 77,007 |
| Dividend | -572,494 | -559,266 | -572,494 | -559,266 | -572,494 | -559,266 |
| Cash flow from financing activities | -641,008 | -562,790 | -800,170 | -833,552 | -1,204,696 | -1,238,078 |
| Cash flow for the period | -460,988 | -285,357 | -291,997 | -297,046 | -179,996 | -185,045 |
| Cash and cash equivalents at start of period | 969,208 | 974,125 | 801,474 | 985,756 | 688,687 | 985,756 |
| Exchange rate differences | -2,965 | -81 | -4,222 | -23 | -3,436 | 763 |
| Cash and cash equivalents at end of period | 505,255 | 688,687 | 505,255 | 688,687 | 505,255 | 801,474 |
*Reduction of earn-out liability EUR 151.1 million in 2024. Other items consist mainly of unrealised foreign exchange differences.
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
The company presents certain financial measures in the interim report that are not defined under IFRS. The company believes that these measures provide useful supplemental information to investors and the company's management as they permit the evaluation of the company's financial performance and position. Since not all companies calculate financial measures in the same way, these are not always comparable to the measures used by other companies. Consequently, these financial measures should not be seen as a substitute for measures defined under IFRS. The tables below include measurements that are not defined in accordance with IFRS, unless otherwise stated. For definitions and purposes, see the last page of the report.
Consolidated key ratios
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2024 |
|---|---|---|---|---|---|---|
| Net revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,098,437 | 2,063,085 |
| Adjusted EBITDA margin | 65.9% | 68.0% | 65.8% | 68.5% | 67.0% | 68.4% |
| EBITDA margin | 65.9% | 68.0% | 65.8% | 68.5% | 69.2% | 70.5% |
| Operating margin | 58.4% | 61.2% | 58.3% | 61.7% | 62.5% | 64.1% |
| Profit margin | 47.4% | 52.9% | 48.1% | 53.3% | 53.7% | 56.2% |
| Equity/assets ratio | 75.3% | 76.6% | 75.3% | 76.6% | 75.3% | 74.3% |
| Cash and cash equivalents | 505,255 | 688,687 | 505,255 | 688,687 | 505,255 | 801,474 |
| Average number of full-time employees | 15,965 | 15,395 | 15,791 | 15,146 | 15,208 | 14,885 |
| Full-time employees at end of period | 16,311 | 16,164 | 16,311 | 16,164 | 16,311 | 15,381 |
| Earnings per share before dilution, EUR (IFRS) | 1.22 | 1.28 | 2.46 | 2.55 | 5.86 | 5.94 |
| Equity per share, EUR | 18.33 | 17.43 | 18.33 | 17.43 | 18.33 | 19.23 |
| Op. cash flow per share before dilution, EUR | 1.10 | 1.48 | 2.86 | 2.91 | 6.17 | 6.21 |
| Average number of outstanding shares before dilution | 203,936,698 | 211,043,861 | 204,773,575 | 211,184,863 | 206,357,107 | 209,562,751 |
| Number of outstanding shares | 203,385,770 | 211,043,928 | 203,385,770 | 211,043,928 | 203,385,770 | 206,562,243 |
Consolidated key ratios by quarter
| Group, EUR thousands | Q2/25 | Q1/25 | Q4/24 | Q3/24 | Q2/24 | Q1/24 | Q4/23 | Q3/23 | Q2/23 |
|---|---|---|---|---|---|---|---|---|---|
| Net revenues | 524,269 | 520,944 | 533,845 | 519,379 | 508,410 | 501,451 | 475,310 | 452,642 | 441,075 |
| Adjusted EBITDA | 345,267 | 341,976 | 363,557 | 355,607 | 345,767 | 345,786 | 336,963 | 318,599 | 311,693 |
| Adjusted EBITDA margin | 65.9% | 65.6% | 68.1% | 68.5% | 68.0% | 69.0% | 70.9% | 70.4% | 70.7% |
| EBITDA | 345,267 | 341,976 | 454,965 | 415,257 | 345,767 | 345,786 | 336,963 | 318,599 | 311,693 |
| EBITDA margin | 65.9% | 65.6% | 72.8% | 71.7% | 68.0% | 69.0% | 70.9% | 70.4% | 70.7% |
| Operating profit | 306,383 | 303,435 | 417,634 | 379,179 | 311,129 | 311,611 | 302,598 | 287,137 | 281,515 |
| Operating margin | 58.4% | 58.2% | 66.8% | 65.5% | 61.2% | 62.1% | 63.7% | 63.4% | 63.8% |
| Revenue growth vs prior year | 3.1% | 3.9% | 12.3% | 14.7% | 15.3% | 16.7% | 16.6% | 19.6% | 28.2% |
| Revenue growth vs prior quarter | 0.6% | -2.4% | 2.8% | 2.2% | 1.4% | 5.5% | 5.0% | 2.6% | 2.7% |
| Cash and cash equivalents | 505,255 | 969,208 | 801,474 | 663,730 | 688,687 | 974,125 | 985,756 | 813,320 | 541,707 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Reconciliation of selected key ratios not defined in accordance with IFRS
| Group, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2025 |
|---|---|---|---|---|---|---|
| Net revenues | ||||||
| Total operating revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,249,495 | 2,214,143 |
| Other operating revenues | - | - | - | - | -151,058 | -151,058 |
| Net revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,098,437 | 2,063,085 |
| Operating margin | ||||||
| Profit before tax | 294,504 | 317,921 | 596,693 | 635,409 | 1,400,208 | 1,438,924 |
| Net financial items | 11,879 | -6,792 | 13,125 | -12,669 | 6,423 | -19,371 |
| Operating profit (EBIT) | 306,383 | 311,129 | 609,818 | 622,740 | 1,406,631 | 1,419,553 |
| Divided by Total operating revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,249,495 | 2,214,143 |
| Operating (EBIT) margin | 58.4% | 61.2% | 58.3% | 61.7% | 62.5% | 64.1% |
| Adjusted EBITDA and adjusted EBITDA margin | ||||||
| Profit before tax | 294,504 | 317,921 | 596,693 | 635,409 | 1,400,208 | 1,438,924 |
| Net financial items | 11,879 | -6,792 | 13,125 | -12,669 | 6,423 | -19,371 |
| Depreciation/amortisation | 38,884 | 34,638 | 77,425 | 68,813 | 150,834 | 142,222 |
| Other operating revenues | - | - | - | - | -151,058 | -151,058 |
| Adjusted EBITDA | 345,267 | 345,767 | 687,243 | 691,553 | 1,406,407 | 1,410,717 |
| Divided by Net revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,098,437 | 2,063,085 |
| Adjusted EBITDA margin | 65.9% | 68.0% | 65.8% | 68.5% | 67.0% | 68.4% |
| EBITDA and EBITDA margin | ||||||
| Profit before tax | 294,504 | 317,921 | 596,693 | 635,409 | 1,400,208 | 1,438,924 |
| Net financial items | 11,879 | -6,792 | 13,125 | -12,669 | 6,423 | -19,371 |
| Depreciation/amortisation | 38,884 | 34,638 | 77,425 | 68,813 | 150,834 | 142,222 |
| EBITDA | 345,267 | 345,767 | 687,243 | 691,553 | 1,557,465 | 1,561,775 |
| Divided by Total operating revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,249,495 | 2,214,143 |
| EBITDA margin | 65.9% | 68.0% | 65.8% | 68.5% | 69.2% | 70.5% |
| Profit margin | ||||||
| Profit for the period | 248,317 | 269,143 | 502,986 | 538,300 | 1,208,701 | 1,244,015 |
| Divided by Total operating revenues | 524,269 | 508,410 | 1,045,213 | 1,009,861 | 2,249,495 | 2,214,143 |
| Profit margin | 47.4% | 52.9% | 48.1% | 53.3% | 53.7% | 56.2% |
| Equity/Assets ratio | ||||||
| Total equity | 3,728,860 | 3,678,727 | 3,728,860 | 3,678,727 | 3,728,860 | 3,971,835 |
| Divided by Total assets | 4,953,773 | 4,799,664 | 4,953,773 | 4,799,664 | 4,953,773 | 5,346,772 |
| Equity/Assets ratio | 75.3% | 76.6% | 75.3% | 76.6% | 75.3% | 74.3% |
Revenue growth at constant currency is estimated by applying the GGR-to-Revenue ratio in the current quarter to the Gross Gaming Revenue ("GGR") converted to EUR using the exchange rates of the corresponding quarter of the previous year.
Operating expenses at constant currency are calculated by applying the exchange rates used in consolidation of the corresponding quarter of the previous year.
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Condensed Parent Company income statement and other comprehensive income
| Parent company, EUR thousands | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul 2024-Jun 2025 | Jan-Dec 2024 |
|---|---|---|---|---|---|---|
| Net sales | 4,800 | 4,456 | 9,007 | 9,436 | 15,234 | 15,663 |
| Other external expenses | -6,957 | -4,643 | -12,503 | -9,732 | -23,553 | -20,782 |
| Operating profit | -2,157 | -187 | -3,496 | -296 | -8,319 | -5,119 |
| Financial income and expenses | -652 | 45 | 1,108 | -1,778 | 1,451,767 | 1,448,881 |
| Profit before tax | -2,809 | -142 | -2,388 | -2,074 | 1,443,448 | 1,443,762 |
| Tax on profit for the period | -27,274 | -27,766 | -56,065 | -57,269 | -126,501 | -127,705 |
| Profit for the period* | -30,083 | -27,908 | -58,453 | -59,343 | 1,316,947 | 1,316,057 |
*Profit for the period coincides with comprehensive income for the period.
Condensed Parent Company balance sheet
| Parent company, EUR thousands | 30/06/2025 | 30/06/2024 | 31/12/2024 |
|---|---|---|---|
| Assets | |||
| Intangible assets | 73 | 65 | 40 |
| Property, plant and equipment | 237 | 317 | 264 |
| Participating interest in Group companies | 2,630,780 | 2,630,780 | 2,630,780 |
| Deferred tax assets | 1,000 | 241 | 628 |
| Other non-current receivables | 522 | 514 | 518 |
| Total non-current assets | 2,632,612 | 2,631,917 | 2,632,230 |
| Receivables from Group companies | 4,800 | 4,391 | 633,178 |
| Other current receivables | 1,577 | 1,513 | 1,047 |
| Prepaid expenses and accrued income | 8,612 | 7,739 | 6,222 |
| Cash and cash equivalents | 43,007 | 6,614 | 14,126 |
| Total current assets | 57,996 | 20,257 | 654,573 |
| TOTAL ASSETS | 2,690,608 | 2,652,174 | 3,286,803 |
| Equity and liabilities | |||
| Share capital | 650 | 650 | 650 |
| Retained earnings including profit for the period | 2,304,643 | 2,171,877 | 3,153,208 |
| Total equity | 2,305,293 | 2,172,527 | 3,153,858 |
| Accounts payable | 1,629 | 85 | 407 |
| Current tax liabilities | 185,838 | 58,877 | 129,254 |
| Liabilities to Group companies | 194,500 | 419,387 | 6 |
| Other current liabilities | 1,807 | 316 | 1,324 |
| Accrued expenses and prepaid income | 1,541 | 982 | 1,954 |
| Total current liabilities | 385,315 | 479,647 | 132,945 |
| TOTAL EQUITY AND LIABILITIES | 2,690,608 | 2,652,174 | 3,286,803 |
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Notes to the financial statements
Note 1. Accounting principles
Evolution prepares its financial statements in accordance with the International Financial Reporting Standards (IFRS) as approved by the European Union. The Group's interim report has been prepared in accordance with IAS 34, Interim Financial Reporting. The Parent Company uses the same accounting principles as the Group, with the addition of the Swedish Financial Reporting Board's recommendation; RFR 2, Accounting for Legal Entities. The accounting policies are unchanged from the 2024 annual report. There are no amendments to IFRS standards in 2025 that have had material impact on the Group's results of operations and financial position.
Amounts are expressed in thousands of Euro (EUR) unless otherwise indicated. Amounts or figures in parentheses indicate comparative figures for the corresponding period last year.
Note 2. Events following the balance sheet date
No significant events.
Note 3. Incentive programmes
The company has two incentive programmes. Upon full exercise of the warrants within the programme 2023/2026 (adopted by the Extra General Meeting on 9 November 2023), the dilution effect will be approximately 0.9 percent. Upon full exercise of the warrants within the programme 2025/2028 (adopted by the Annual General Meeting on 9 May 2025), the dilution effect will be approximately 1.0 percent.
Note 4. Seasonality
Evolution's operations are, to a certain extent, influenced by seasonal patterns in end-user activity. The Group's customers generally notice increased end-user activity and an increased volume of operations in the fourth quarter of each year, which is consistent with the Group's experience of increased online casino traffic and commission income earned in the fourth quarter.
Note 5. Acquisition of group companies
In 2024, Evolution entered into an agreement to acquire Galaxy Gaming, Inc. for a total equity value of approximately USD 85 million, payable in cash. Closing is expected in the second half of 2025; Galaxy Gaming Inc. is therefore not yet included in the consolidated accounts.
Evolution has during the second quarter made an earn-out payment of EUR 11.2 million for Nolimit City.
Interim report | January-June 2025 | Evolution AB (publ)
Evolution
Definitions of key ratios
| Key ratios | Definition | Purpose |
|---|---|---|
| Net revenues | Total operating revenues less other operating revenues. | Key ratio used by management to monitor the revenue trend in the Group. |
| Operating profit (EBIT) | Profit before tax excluding net financial items. | Key ratio used by management to monitor the earnings trend in the Group. |
| Operating margin (EBIT)margin | Operating profit in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| EBITDA | Operating profit less depreciation. | Key ratio used by management to monitor the earnings trend in the Group. |
| EBITDA margin | EBITDA in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Adjusted EBITDA | EBITDA less other operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Adjusted EBITDA margin | Adjusted EBITDA in relation to net revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Profit margin | Profit for the period in relation to total operating revenues. | Key ratio used by management to monitor the earnings trend in the Group. |
| Equity/assets ratio | Equity at the end of period in relation to total assets at the end of period. | Key ratio indicates the Group's long-term payment capacity. |
| Cash and cash equivalents | Cash and bank assets. | Used by management to monitor the Group's short-term payment capacity. |
| Revenue growth compared with the previous year | Net revenues for the period divided by net revenues in the same period last year. | Key ratio used by management to monitor the Group's revenue growth. |
| Revenue growth compared with the preceding quarter | Net revenues for the period divided by net revenues for the preceding quarter. | Key ratio used by management to monitor the Group's revenue growth. |
| Average number of full-time equivalents | The average number of full-time equivalents during the period. Full-time equivalents include part-time positions. | Key ratio used by management to monitor the Group's number of employees' growth. |
| Per share | ||
| Earnings per share before dilution | Profit for the period in relation to the average number of shares outstanding before dilution during the period. | Key ratio used by management to monitor the earnings trend in the Group. |
| Equity per share | Shareholders' equity divided by the number of shares outstanding at the end of the period. | Key ratio used by management to monitor the earnings trend in the Group. |
| Operational cash flow per share before dilution | Cash flow from operating activities in relation to the average number of shares outstanding before dilution during the period. | Key ratio used by management to monitor the cash flow trend in the Group. |
| Average number of shares outstanding | The average number of shares outstanding before dilution during the period. | Used to calculate key ratios in relation to the number of shares during the period. |
| Number of shares outstanding | Number of shares outstanding at the end of the period less shares in own custody. | Used to calculate key ratios in relation to the number of shares at the end of the period. |
Interim report | January-June 2025 | Evolution AB (publ)