Evolution AB Financial Update: Q1 2025

Evolution AB, a prominent gaming company specializing in B2B live casino solutions, has released its interim report for the first quarter of 2025. The company, listed on the Swedish Stock Exchange, reported a net revenue increase of 3.9% to EUR 520.9 million, up from EUR 501.5 million in the same period last year. Despite this revenue growth, EBITDA saw a slight decrease of 1.1% to EUR 342.0 million, resulting in a margin of 65.6%, down from 69.0%.

Profit for the quarter amounted to EUR 254.7 million, compared to EUR 269.2 million in the previous year. Earnings per share before dilution were reported at EUR 1.24, a slight decrease from EUR 1.27. The company’s CEO, Martin Carlesund, attributed the decelerated growth rate to both currency rate developments and strategic actions aimed at long-term benefits. These actions include addressing cyber activity issues in Asia and launching new studios in New Jersey and Romania.

In addition to these developments, Evolution AB initiated a share repurchase program, acquiring a total of 2,100,081 shares during the quarter. Carlesund emphasized that these proactive measures, including ring-fencing regulated markets in Europe, are expected to positively impact the business in the longer term.

Market Conditions and Analyst Expectations

On April 29, 2025, financial analysts provided their expectations for Evolution Gaming Group Registered’s upcoming quarterly results. Analysts anticipate an earnings per share of EUR 1.35, marking a significant decrease of 90.61% compared to the previous year’s EUR 14.37 SEK. Revenue projections for the quarter show a substantial decline of 90.41%, with analysts estimating EUR 542.4 million, down from EUR 5.66 billion SEK in the prior year.

For the current fiscal year, analysts have projected an average earnings per share of EUR 5.73, a decrease from EUR 67.89 SEK per share last year. Revenue forecasts for the year are set at EUR 2.27 billion, compared to EUR 23.59 billion SEK in the previous year.

Stressed Market Conditions

On April 30, 2025, NASDAQ Nordic announced stressed market conditions for derivatives on Evolution AB (EVO) for a four-hour period. This decision was made due to high intraday volatility and uncertainty in pricing derivatives linked to the company. During this period, market makers are permitted to quote prices with double the normal spread. An assessment will follow to determine if these conditions persist.

Evolution AB, with a market capitalization of SEK 15.1 billion and a price-to-earnings ratio of 12.58, continues to navigate a challenging market environment while implementing strategic measures to strengthen its long-term position in the Consumer Discretionary sector.