Evolution showed mid-year progress in its Q2 Interim Report.

Main Details:

• Net revenue went up by 3.1% compared to last year at the same time.
• Profits dropped 7.7% in Q2 from the previous year’s quarter.
• The company stays positive and still expects a yearly EBITDA margin from 66% to 68%.

The company’s products now cover more regulated areas, and growth in finances slowed for Evolution, a global gaming provider. Recently, Evolution grew its position in Asian and Latin American markets and pointed to strict European rules and Asian cybercrime as reasons for weaker performance. A small rise in full iGaming revenue took place, but profits were a little lower than in the same months a year ago.

Evolution CEO Acknowledges Slower Growth in Q2, Pledges Focus on Acceleration amid Regulatory Challenges

CEO Martin Carlesund told investors not to worry, saying Q2 matched what Evolution planned for in the tough Asian market. “But we want to say, this quarter’s growth did not meet our goal, and we will focus more to speed it up. Still, from an operations view, we are on plan for where we began the year.” Q2 net revenues climbed 3.1%, and EBITDA for the quarter landed at €345.3 million.

Profit amounted to €248.3 million, lower than the €269.1 million reported for Q2 a year before. Martin Carlesund explained that one issue for slower gains in Europe is their use of ringfencing policy. Following an investigation by the UK Gambling Commission, which found Evolution games on illegal, unlicensed websites, Evolution blocked those sites from using their games.

Summary of points:

• Year-on-year net revenue increased by 3.1%.
• Q2 profits fell 7.7% over the same period a year ago.
• Evolution is optimistic and still aims for an EBITDA margin of 66–68% this year.

Expansion into new regulated places led to a slower rate of financial growth for Evolution. The supplier reached for wider markets in Asia and Latin America, and named European regulations and Asian cyber challenges as reasons for not hitting high results. Revenue in global iGaming improved a bit, but quarterly profit did not reach last year’s figure.

Evolution Faces Slower Growth in Europe as Ringfencing and Compliance Impact Results

Carlesund tried to reassure shareholders, stating expectations for Q2 were similar to the outcome, despite difficulties in Asia. “It is true that we did not get the growth we wanted, and we put in more work to build up speed. However, on the whole, we are running just as we planned for 2024.” Net revenue for Q2 ended up 3.1% higher, with reported EBITDA at €345.3 million.

For profits, Evolution recorded €248.3 million, down compared to last Q2’s €269.1 million. The company’s leader said ringfencing is part of the reason why growth in Europe is not as fast. After a UK Gambling Commission review saw Evolution games on illegal sites, the company removed those games from the listed websites.