Market reacts positively to Evolutions Q2 results despite Trumps tariffs
Shares of Evolution AB surged 6.5% following the release of its Q2 earnings, with the Swedish gaming giant reporting net revenues of 524.3 million. Markets reacted positively to the results, despite recent turmoil in European stock exchanges triggered by Trumps new tariffs.
While this revenue represents a 3.1% year-on-year increase, CEO Martin Carlesund (pictured above) was candid about the pace of expansion: We are not satisfied with this quarters growth, and we are working hard to increase the pace.
Carlesund argued that while the results were more in line with our expectations given the challenges we face in Asia, he acknowledged the subdued performance. Operationally speaking we are where we set out to be at the beginning of the year, he said, underscoring the companys long-term strategy.
According to the Q2 2025 report, EBITDA came in at EUR 345.3 million, translating to a margin of 65.9%, down slightly from 68.0% a year earlier. Profit for the period dropped to EUR 248.3 million from EUR 269.1 million.
Tackling headwinds in Asia and Europe
Much of the drag came from ongoing issues in Asia. We continue to address the ongoing issues with cybercrime and the hijacking of our video streams, Carlesund noted. We are in the absolute technological forefront in defending our intellectual property and our products. He added that as we deploy new measures constantly, we are starting to reap some benefits, and revenue in the region is back to growth.
Europe remained a sore spot, where Evolution reported another quarter with negative growth compared both year-on-year and quarter-on-quarter. Carlesund attributed this to regulatory interventions: 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.
He issued a cautionary note to policymakers: 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.
Betting big on expansion
Despite the hurdles, . In June we launched our first ever Asian studio, in the Philippines, said Carlesund, calling it a significant milestone. He also announced the opening of another state-of-the-art studio in S?o Paulo, Brazil. It is a perfectly timed launch considering Brazils transition to regulation earlier this year, he added.
The North American market remains strong. We continue to expand our offerings as well as our US studio network with the planning of a new studio in Grand Rapids, Michigan. And Evolution is now present in all seven U.S. states with legal online 바카라 gaming following a partnership with Ballys Corporation.
Carlesund also revealed a significant licensing deal: Weve expanded our partnership with Hasbro to become their exclusive global provider for online 바카라 games based on Hasbros iconic brands, including Monopoly.
He hinted at big product moves ahead: We are now preparing to launch Monopoly Live in the U.S. In addition we are developing three completely new live 바카라 Hasbro-based titles.
Eye on the second half
Our belief that the second half of the year will be stronger remains, Carlesund said, reiterating full-year EBITDA margin guidance of 66C68%.
Evolution is also leaning into innovation. For 2025, we have the strongest product roadmap ever with more than 110 new releases, Carlesund said. This includes 24 game releases in Q2 alone, four live 바카라 titles, and 20 slot games.
Even with the softer numbers, the companys founder remains bullish: We take action, continue to make Evolution stronger every day, continue a worldwide expansion at the same time that we systematically and methodically handle each challenge.
