Evolution–still locked in mortal legal combat with its arch-rival Playtech, amid allegations of skullduggery by ex-Israeli Mossad Secret Service agents–has published its hotly-awaited FY25, which shows broadly stable net revenues alongside lower profitability compared to 2024, as continued investment in live casino capacity and platform development weighed on margins.
“Looking at 2025 as a whole from an operational perspective, it might have been one of our strongest years ever with amazing new games and studio expansions in all parts of the world,” attested CEO Martin Carlesund.
“On top of that, we have handled several tough and sometimes unexpected situations: Ring-fencing, extremely questionable or even criminal activities from competitors, and cyber criminality.
“Despite these challenges, we still delivered a solid margin of 66.1 percent and a fantastic cash flow.
“The financial performance was not as strong as we would have wanted when entering the year, but I am happy with the way the company has stood up for what is right and lived up to our ambition to become a little bit better every day.”
Latvia
For the full year, Evolution, with its origins in Latvia, reported net revenues of €2.07 billion (£1.79bn), representing a marginal 0.2 percent increase year-on-year, while total operating revenues declined by 4.3 percent to €2.12 billion (£1.84bn).
Adjusted EBITDA, excluding other operating revenues, amounted to €1.37 billion (£1.19bn), down 3.2 percent, compared with 2024, corresponding to an adjusted EBITDA margin of 66.1 percent.
Earnings-per-share amounted to €5.24.
Net revenues declined by 3.7 percent, y-o-y, to €514.2 million (£447.09m) in Q4, while total operating revenues decreased by 9.5 percent to €565.9 million (£492.04m).
Adjusted EBITDA for Q4 fell by 6.1 percent to €341.5 million (£296.96m), with an adjusted EBITDA margin of 66.4 percent. Profit for the period amounted to €306.8 million (£266.8m) and earnings-per-share for the quarter were €1.54.
Live Casino
Live casino continued to account for the majority of Evolution’s iGaming revenue, generating €438.6 million (£381.45m) in Q4, compared with €75.7 million (£65.66m) from RNG products. For the full year, live games contributed €1.77 billion (£1.53bn) in net revenues, while RNG games generated €294 million (£255.71m).
The company said revenue continued to derive mainly from commission income from existing customers, with additional contribution from new customer launches, and pointed to ongoing demand for online casino games supported by regular releases of new titles and variations.
Evolution reported approximately 2,000 live tables at the end of the period, compared with around 1,700 a year earlier. Full year operating expenses, reflecting the expansion, totalled €860.9 million (£748.64m).
Cash and cash equivalents at the end of FY25 stood at €818 million (£711.16m).
Latin America
Continued Carlesund: “Latin America grew well year-on-year. Brazil is continuing to progress following the new regulation, and we see that players are increasingly discovering and enjoying our wide portfolio of games. In Argentina, one of our competitors has withdrawn from the market, providing us with the opportunity to buy their studio.
“We look forward to further expanding our footprint and market share in Argentina as a result of this.
“We believe that Evolution currently has the strongest ring-fencing measures in place among all suppliers, but we also recognise that the regulated markets are losing ground.”
Good Times, Bad Times
Carlesund argued that “the regulatory scale is not in balance, and this development is bad for the most vulnerable players”.
“However, the scale tends to swing over time, and we remain as committed as ever to providing European operators and players with the most entertaining experiences.
“Our product roadmap for the next 12-months is nothing short of spectacular and might prove to be the largest step ever in terms of increasing the gap relative to our competition.
“2026 marks Evolution’s 20th anniversary. Looking back at the first 20-years, from a first small Live studio in Latvia to the global giant in interactive entertainment that Evolution is today, is almost overwhelming.
“We have reached that position by constantly challenging ourselves, both in good and bad times, and we will continue to do so for the next 20-years as well.”
