Evolution AB published its interim report for January to June 2025, showing a modest rise in revenue but a decline in profits and margins.
CEO Martin Carlesund said that “we are not satisfied with this quarter’s growth, and we are working hard to increase the pace.”
Net revenues for Q2 2025 reached €524.3 million, a 3.1% increase from €508.4 million in Q2 2024. Of this, over 85% came from Evolution’s live online casino games accounted for €453.7 million of revenue, with the remainder coming from slots.
EBITDA stood at €345.3 million, with an EBITDA margin of 65.9%, slightly lower than the 68.0% margin recorded in Q2 last year. The concern for Carlesund was the drop in profit, which declined to €248.3 million, down from €269.1 million in 2024, reflecting a 7.7% drop year-on-year.
The drop in profit was largely due to an increase in expenses. Personnel expansion and new studio launches contributed to an increase in operating expenses to €217.9 million from €197.3 million.
The company invested €33 million this quarter, including €18.6 million in game development and platform enhancements.
Evolution In Philippines, Brazil, and Rhode Island
The second quarter saw the company launch its first studio in the Philippines, and it also launched a studio in Sao Paulo, Brazil.
Commenting on the launches in Evolution’s financial report, Carlesund wrote that the Philippines venture, “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.”
In addition, he stated, “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!”
Evolution has also partnered with Bally’s Casino to enter the online gaming market in Rhode Island. Bally’s has exclusive rights to iGaming in the state, and it means Evolution now has a presence in all states that have legal online casino apps.
Carlesund stated, “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.”
Company Targets Further Evolution In H2
Carlesund went on to say, “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.”
As well as expansion in the Philippines, Brazil, and Rhode Island, the company has also extended its partnership with Hasbro. The company behind the Monopoly game has granted Evolution exclusive rights to develop games using its branding.
Evolution is preparing to launch Monopoly Live in the US and is also developing other live casino and slot games with the Hasbro branding.
