Evolution AB (publ) (EVO) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you. Good morning, everyone, and welcome to the presentation of Evolution's report for the second quarter 2025. My name is Martin Carlesund and I'm the CEO of Evolution. With me, I have our CFO Joakim Andersson. I will start with some comments on our performance as usual and then hand over to Joakim for a closer look at our financials. After that, I will conclude with an outlook and then we will open the call for questions. Next slide, please. So let's start with the financial and operational highlights in the quarter. The two main operational themes for the first quarter continue to impact our financial results. Firstly, we continue to ring-fence the European markets in order to stay ahead of changes that we know will come to the regulatory landscape. What that means is that we effectively ring-fence the markets with local regulation and ensure that our gains are only available with locally licensed operators in markets where such license exists. What started with the UK has now followed on more European markets affecting our revenues in the region for the short term. The impact of these measures depend on the level of channelization. In markets where it's high, it has had little impact, but in markets where low channelization is, it has meant that it drops in revenue. We firmly believe that the regulation is a driver for the market and we continue to support regulators in any way we can. This is something that we are proactively doing to ensure that we are fully prepared when the landscape shifts. Thereby, we increase our advantage, competitive edge and further distance between us and the competition. However, with that said, the increased regulation are affecting us to somewhat higher extent year on year than we anticipated. Adaptions always take time and th...