Evolution hits bottom of STOXX after Q1 EBITDA miss, sales growth slowdown

Evolution AB (publ)

30/04/2025 08:28

** Shares in Evolution EVOG.ST slump 17% after the Swedish gaming technology company reported Q1 earnings below estimates

** The group, which provides solutions for online casino operators, delivered quarterly EBITDA of EUR 342 million ($389.16 million), compared to the LSEG estimate of EUR 366.7 million

** "Revenue growth slowed in all regions globally, most notably in Europe and Asia," Jefferies says in a note

** Evolution's Q1 revenue came in at EUR 520.9 million, below the EUR 546.8 million seen in LSEG poll

** Currency rates, countermeasures to cyber-attacks in Asia and "proactive" changes to reflect evolving regulatory landscape in Europe impacted revenue growth, Evolution said in the earnings statement

** It added that it expects actions to safeguard regulated markets in Europe to impact Q2 but forecasts H2 to be stronger, so it keeps its full-year EBITDA margin estimate of 66-68%

** Following the report, J.P.Morgan says it expects cuts to consensus EBITDA estimates for FY25 onwards ranging from low- to mid-single digit percentage

** The stock, on track for its worst day since listing in 2015, is at the bottom of STOXX index .STOXX

($1 = 0.8788 euros)

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))