Evolution (EVO) Q1 2025 earnings summary

Executive summary

• Net revenues grew 3.9% year-on-year to EUR 520.9 million in Q1 2025, with constant currency growth at 6.1%.

• EBITDA decreased 1.1% to EUR 342.0 million, with margin at 65.6% (down from 69.0% a year ago).

• Profit for the period was EUR 254.7 million, with EPS at EUR 1.24, nearly flat year-on-year.

• Proactive regulatory ring-fencing in Europe and technical countermeasures in Asia impacted short-term growth and profitability.

• Studio expansion continued with new facilities in Romania and New Jersey, and upcoming launches in Brazil and the Philippines.

Financial highlights

• Live segment revenue: EUR 448.7 million (+4% year-on-year); RNG revenue: EUR 72.3 million (+3.1% year-on-year).

• Operating expenses: EUR 217.5 million (+15% year-on-year), driven by investments in new products and capacity.

• Operating profit reached EUR 303.4 million; operating margin was 58.2% (down from 62.1%).

• Operating cash flow after investments: EUR 327.7 million, with cash conversion at 87%.

• Investments in intangibles and property, plant, and equipment totaled EUR 33.6 million; full-year CapEx expected at EUR 140 million.

Outlook and guidance

• Full-year EBITDA margin guidance maintained at 66–68%, with expectations for a stronger second half of 2025.

• Over 110 new games and product releases planned for 2025, with strong operator reception.

• Capex forecast for 2025 is EUR 140 million.

• Dividend policy: minimum 50% of net profit; proposed dividend of EUR 2.80 per share.

• Share repurchase program of EUR 500 million planned for 2025.