Evolution experienced a slight decrease of 1.2% in revenue in the second quarter, amounting to €517.8 million, while net profit rose by 1.3% to €251.4 million, aided by improved performance in key markets and better cash flow generation.
In terms of constant currency revenue growth, there was an increase of 2.4% in comparison with the previous year, with the EBITDA margin remained stable at 65.9%.
CEO Martin Carlesund said the company delivered a stronger quarter than the start of the year.
Overall, I am happy with the performance in the quarte. Revenue and margin are moving in the right direction compared to the first quarter, cost control remains strong, cash flow is improving, and we continue to expand in key markets while executing on our product roadmap. The region remains volatile as earlier stated, and increased cybercrime activity could not be fully offset by otherwise relatively favourable development. The volatility is something we continue to work through.
There was a return to growth in the European market with revenue showing a rise of 3.5% compared to the previous quarter, while impressive growth of 26.3% was registered in Latin America with revenue reaching €47.5 million.
Moreover, the North American market has grown by 9.5% due to the launch of live casinos; however, the Asian market remains unstable with revenues falling by 3.7% as a part of the ongoing fight against cybercrime.
The string performance of the RNG sector has been continuing in the company with revenue of €80.5 million, whereas live casinos have shown a decrease of €437.3 million.
A significant part of the company’s income, nearly 49% is generated in regulated markets.
The company’s performance was improved by the recent settlement of £4.75 million with Great Britain’s gambling regulator that resulted in the completion of the process of license approval concerning the games that were offered at illegal sites in the United Kingdom.
The company has released data on cash flow of €293 million and cash of more than €1.15 billion.
The acquisition transaction with Galaxy Gaming for the amount of $85 million over which the period of negotiation has been over since July 17.