Mixed financials in Q2 prompt strategic optimism and continued focus on new markets
Modest Revenue Growth, Profit Decline in Q2 2025
Global iGaming leader Evolution has posted its financial results for Q2 2025, showing modest revenue growth of 3.1% year-on-year but a 7.7% drop in net profit, reflecting the mounting impact of regulatory scrutiny and external pressures across key markets. Net revenues for the quarter reached €345.3 million, while profits stood at €248.3 million, down from €269.1 million in Q2 2024.
Despite the dip, CEO Martin Carlesund remains confident, attributing the slowdown to increased regulatory intervention in Europe and cybercrime-related disruptions in Asia, especially in markets like China and Southeast Asia, where digital black market activity has posed compliance risks and market instability.
Regulatory Growing Pains in Europe
One key reason for Evolution’s sluggish profit performance has been its policy of ringfencing, particularly in Europe. In response to findings from a UK Gambling Commission (UKGC) investigation—showing that some of its content was accessible via unlicensed operators—Evolution moved to cut off access to those platforms. While this was a move to enhance long-term credibility and compliance, it temporarily narrowed the company’s revenue base.
Carlesund acknowledged the value of regulation but warned:
“A too heavily regulated market will cause a decrease in player protection and a reduced market for regulated companies.”
Expansion in LatAm and Asia Offers Growth Opportunities
While Europe cools, Evolution is doubling down on international expansion, particularly in Latin America and Asia. The company launched its first Asian live casino studio in June, and recently debuted a new facility in São Paulo, Brazil, signaling a push into emerging regulated markets.
The company also highlighted its roadmap for 2025, which includes 110 new game releases, including three live casino titles in Q3. These developments, combined with a new licensing deal with Hasbro and entry into the Rhode Island market in the U.S., are expected to help counterbalance short-term regulatory setbacks.
Maintaining EBITDA Outlook Despite Hurdles
Despite underwhelming Q2 profit figures, Evolution is maintaining its full-year EBITDA margin forecast of 66–68%, suggesting confidence in operational efficiency and the long-term success of its new projects.
Carlesund admitted that the pace of growth hasn’t met internal expectations but emphasized that “operationally speaking, we are where we set out to be at the beginning of the year.” That includes new regional studios, expanded content pipelines, and a more disciplined approach to regulatory compliance.
Looking Ahead: A Cautious but Focused Strategy
While short-term profitability has been impacted, Evolution’s Q2 results reflect a company in strategic transition. With increased regulatory maturity, entry into high-growth markets, and a robust release pipeline, the company is positioning itself for sustainable, long-term growth in a competitive global iGaming landscape. The true test will lie in how effectively it can convert new market entries and game innovation into tangible financial returns in the latter half of 2025.
