Evolution AB (publ)

Q2 net revenue was EUR 517.8 million, down 1.2% year over year and up 0.9% quarter over quarter. EBITDA was EUR 341 million, for a 65.9% margin. Total operating expenses were EUR 220 million, up 1% year over year and down 0.2% quarter over quarter; profit for the period was EUR 251.4 million; and EPS after dilution was EUR 1.27. Operating cash flow after investments was EUR 258 million, CapEx was EUR 34.7 million, cash on hand was EUR 1.2 billion, and equity was EUR 4.2 billion. Management said the full-year EBITDA margin remains unchanged, and they reiterated the EUR 2 billion share buyback program; they bought back 5.1 million shares in the quarter and used EUR 303 million of cash for buybacks.

Martin Carlesund said the quarter was broadly in line with expectations and that the business is moving in the right direction, with Europe recovering, North America and Latin America growing, and RNG showing strong momentum. His tone was constructive but guarded on Asia, where he repeatedly said the cybercrime problem remains volatile and must be solved over time. He also emphasized new studio launches, the Hasbro partnership, and a continued focus on building games and the OSS platform rather than spending time on non-growth issues.

Joakim Andersson highlighted stable execution: revenue of EUR 517.8 million, EBITDA of EUR 341 million, EBITDA margin of 65.9%, and EPS of EUR 1.27. He pointed to EUR 220 million of operating expenses, EUR 3.1 million of positive financial net, EUR 258 million of operating cash flow after investments, and EUR 34.7 million of CapEx. He also said cash remained very strong at EUR 1.2 billion, buybacks used EUR 303 million in the quarter, and the company repurchased 5.1 million shares; he added that the full-year EBITDA margin target remains intact and that working-capital initiatives are improving receivables and cash flow.

Analysts focused heavily on Asia, asking whether the underlying market was flat or whether cybercrime was masking growth; management said there is underlying potential, but the current issue is product copying and redistribution, and they would not comment intra-quarter. Questions also centered on Europe’s recovery, the Hasbro pipeline, and the UK license review and duty hike; management said game reception has been very good, the roadmap is skewed toward later in the year, there are no new UK operating changes coming, and higher taxes can hurt channelization. On buybacks and cost/margins, management said the program is being paced by trading volumes and share price, and reaffirmed the full-year EBITDA margin guidance.