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Evolution Gaming Group AB (EVVTY)
OTHER OTC:EVVTY
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Evolution Gaming Group AB
(OTC:EVVTY)
Rating:83Outperform
Price Target:
$99.00
▲(13.88%Upside)
Evolution Gaming Group AB (EVVTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.77B
Dividend Yield3.42%
Average Volume (3M)1.90K
Price to Earnings (P/E)13.7
Beta (1Y)0.63
Revenue Growth8.97%
EPS Growth14.16%
CountryUS
Employees16,368
SectorConsumer Cyclical
Sector Strength69
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.41
Shares Outstanding204,462,160
10 Day Avg. Volume0
30 Day Avg. Volume1,895
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)5.63
Price to Sales (P/S)0.00
P/FCF Ratio24.97
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Evolution Gaming Group AB Business Overview & Revenue Model
Company DescriptionEvolution Gaming Group AB (EVVTY) is a leading provider in the online gaming industry, specializing in live casino solutions. The company operates within the digital entertainment sector, offering state-of-the-art live dealer games, including roulette, blackjack, baccarat, and poker, streamed in real-time from their studios. Evolution Gaming is renowned for providing high-quality streaming experiences and innovative gaming solutions to online casino operators globally.
How the Company Makes MoneyEvolution Gaming Group AB generates revenue primarily through its live casino services offered to online gaming operators. The company's revenue model is based on licensing agreements and service fees from these operators, who integrate Evolution's live dealer games into their platforms. Evolution charges its clients a commission based on a percentage of the revenue generated from the players who use their games. Additionally, the company benefits from strategic partnerships with major online casinos, which help expand its reach and enhance its service offerings. Evolution also invests in continuous product development and innovation, ensuring its games remain competitive and attractive to both operators and players.
Evolution Gaming Group AB Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: 10.36%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reveals mixed results. While there are notable achievements like strong North American growth, new studio launches, and strategic agreements, there are challenges such as regulatory impacts in Europe and ongoing cybercrime issues in Asia. The balance of positive and negative developments suggests a stable but cautious outlook.Q2-2025 Updates
Positive Updates
Revenue Growth
Net revenue for Q2 2025 amounted to EUR 524.3 million, representing a year-on-year growth of 3.1%.
EBITDA Margin
The EBITDA was EUR 345.3 million, with an EBITDA margin of 65.9%, aligning with the company's full year guidance of 66% to 68%.
North American Growth
North America saw a growth trajectory with revenue up almost 23% year-on-year, totaling EUR 73.9 million.
Hasbro Licensing Agreement
A fantastic licensing agreement with Hasbro was signed, allowing Evolution to develop more games like MONOPOLY Big Baller and MONOPOLY Live.
New Studio Launches
Launched a new studio in the Philippines, marking a significant milestone in Asian expansion, and a new studio in Brazil to capture new market opportunities.
Cash Returned to Shareholders
Almost EUR 800 million returned to shareholders through dividends and share buybacks.
Negative Updates
European Revenue Decline
European revenue was negatively affected by ring-fencing measures, resulting in a 5% decline compared to the first quarter of this year.
Regulatory Challenges in Europe
Increased regulations in Europe had a higher impact than anticipated, affecting revenue negatively.
Cybercrime Challenges in Asia
Continuing cybercrime activities in Asia impacted the business, although some progress in combating these issues was reported.
RNG Segment Performance
RNG revenues grew only by 0.3% year-on-year, impacted by the largest payout ever in this segment.
Company Guidance
During the call, Evolution provided guidance for the second half of 2025, highlighting key metrics and operational developments. The company reported a net revenue of EUR 524.3 million for Q2 2025, reflecting a year-on-year growth of 3.1%. EBITDA was EUR 345.3 million with a margin of 65.9%, aligning with the full-year guidance of 66% to 68%. The Life segment saw revenue of EUR 453.7 million, growing 3.6% year-on-year, while RNG revenues were EUR 70.6 million, with a minimal 0.3% growth due to a significant payout affecting the total revenue stream. Evolution anticipates stronger performance in H2, driven by cautious optimism in Asia, a new studio launch in Brazil, and the continuation of proactive measures in Europe. Furthermore, the company remains committed to operational efficiency and expects a slightly higher EBITDA margin in the second half.Evolution Gaming Group AB Financial Statement Overview
Summary
Evolution Gaming Group AB exhibits strong financial health characterized by high profitability, consistent revenue growth, and a robust balance sheet with low leverage. The company's solid cash flow generation underscores its capacity to sustain operations and invest in future growth. These financial metrics position the company favorably in the Gambling, Resorts & Casinos industry.Income Statement
Evolution Gaming Group AB has demonstrated robust financial performance. The TTM (Trailing-Twelve-Months) gross profit margin is an impressive 90.44%, indicating strong cost management and pricing power. The net profit margin stands at 58.92%, reflecting high profitability. Revenue growth from 2022 to 2023 was 23.47%, and from 2023 to 2024 was 14.70%, showing a consistent upward trajectory. EBIT and EBITDA margins are strong at 67.75% and 67.42% respectively, highlighting operational efficiency.90
Very Positive
Balance Sheet
The balance sheet of Evolution Gaming Group AB is solid with a low debt-to-equity ratio of 0.02, indicating minimal leverage and low financial risk. The return on equity (ROE) for TTM is an impressive 29.38%, showcasing effective utilization of equity. The equity ratio is high at 73.47%, suggesting financial stability and a strong equity base.85
Very Positive
Cash Flow
The cash flow statement reveals a healthy position with positive free cash flow growth of 5.56% TTM compared to the previous year. The operating cash flow to net income ratio is 1.11, indicating efficient cash conversion from earnings. The free cash flow to net income ratio is 1.00, showing that the company generates ample free cash flow relative to its net income, which is a positive indicator of cash health.88
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 2.06B | 1.80B | 1.46B | 1.07B | 561.13M |
| Gross Profit | 1.89B | 2.11B | 1.80B | 936.13M | 1.09B | 308.37M |
| EBITDA | 1.41B | 1.59B | 1.28B | 1.01B | 730.94M | 332.26M |
| Net Income | 1.23B | 1.24B | 1.07B | 843.36M | 605.43M | 284.62M |
Balance Sheet | ||||||
| Total Assets | 5.69B | 5.35B | 4.97B | 4.37B | 3.90B | 3.17B |
| Cash, Cash Equivalents and Short-Term Investments | 958.09M | 787.07M | 985.76M | 532.55M | 421.43M | 221.68M |
| Total Debt | 92.92M | 93.66M | 79.46M | 79.55M | 67.81M | 49.97M |
| Total Liabilities | 1.51B | 1.37B | 967.27M | 909.09M | 712.12M | 442.94M |
| Stockholders Equity | 4.18B | 3.97B | 4.01B | 3.46B | 3.19B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 1.23B | 1.16B | 1.07B | 780.53M | 537.30M | 279.17M |
| Operating Cash Flow | 1.36B | 1.30B | 1.17B | 877.47M | 598.89M | 316.05M |
| Investing Cash Flow | -238.81M | -247.97M | -139.36M | -371.60M | -154.95M | 6.82M |
| Financing Cash Flow | -1.13B | -1.24B | -574.50M | -394.20M | -248.52M | -279.91M |
Evolution Gaming Group AB Technical Analysis
Positive
86.93
Price Trends
72.75
Positive
74.03
Positive
77.86
Positive
Market Momentum
2.86
Negative
75.20
Negative
66.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVVTY, the sentiment is Positive. The current price of 86.93 is above the 20-day moving average (MA) of 79.04, above the 50-day MA of 72.75, and above the 200-day MA of 77.86, indicating a bullish trend. The MACD of 2.86 indicates Negative momentum. The RSI at 75.20 is Negative, neither overbought nor oversold. The STOCH value of 66.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EVVTY.
Evolution Gaming Group AB Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $17.77B | 13.68 | 31.56% | 3.42% | 8.97% | 14.16% | |
77 Outperform | $8.24B | 26.12 | 46.19% | ― | 7.26% | 54.83% | |
70 Outperform | $2.93B | 10.03 | 1.33% | 5.54% | -33.50% | 35.81% | |
68 Neutral | $54.21B | 106.02 | 5.48% | ― | ― | ― | |
65 Neutral | $378.36M | ― | -2.55% | ― | ― | ― | |
61 Neutral | $38.88B | ― | -46.78% | ― | 22.86% | 30.40% | |
57 Neutral | HK$25.53B | 4.08 | -2.03% | 6.11% | -0.31% | -67.64% |
* Consumer Cyclical Sector Average
Performance Comparison
EVVTY
Evolution Gaming Group AB
86.93
-3.67
-4.05%
BRSL
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14.43
-2.48
-14.67%
LNW
Light & Wonder
97.63
-6.04
-5.83%
DKNG
DraftKings
43.72
6.88
18.68%
CDRO
Codere Online
8.29
0.35
4.41%
FLUT
Flutter Entertainment PLC
306.79
103.50
50.91%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.