The board of directors at Evolution has recommended that shareholders do not receive dividends for the year 2025. This marks a departure from the company's previous policy of distributing 50% of net profits.
On April 1, Evolution published its full Annual Report for 2025, with key financial indicators aligning with the previously released Year-end Report from February 5. Here are some highlights:
Shareholder Policy:
- The board justified its recommendation by stating that profits and excess capital can be distributed in a more effective manner for shareholders than through cash dividends.
- For 2024, the company paid out €2.80 per share, totaling €572.5 million.
- Profit per share for 2025 stands at €5.24, down from €5.94.
- Evolution repurchased 7,335,630 of its own shares in 2025 at an average price of €69.1.
- Market capitalization decreased by 28.7% over the year.
Operational and Financial Metrics:
- Operating profit reached €1,257.3 million, with an operating margin of 59.4% (down from 64.1%).
- Operating cash flow was €1,255.2 million, compared to €1,301.0 million the previous year.
- Cash on hand at the end of the year was €818 million, up from €801.5 million.
- The effective tax rate rose to 14.8% from 13.5%, influenced by Pillar II.
- The company served 870 clients, including 40 in Brazil.
- The largest client accounted for 12% of revenue, down from 13%.
- Mobile revenue made up 73% of total revenue, compared to 71% last year.
- Evolution launched 113 new games in 2025.
Revenue by Region for 2025:
- €793.7 million from Europe (1.1% YoY growth).
- €729.7 million from Asia (6.3% YoY growth).
- €296.8 million from North America (15.2% YoY growth).
- €156.8 million from Latin America (7.8% YoY growth).
- €89.5 million from other markets (14.3% YoY growth).
CEO Martin Carlesund revealed that an unnamed competitor was behind the defamation campaign against Evolution, which has added to the challenges faced by the company.
With a significant drop in market capitalization and the decision to forgo dividends, Evolution is shifting its priorities regarding capital return to shareholders. The increase in the effective tax rate due to Pillar II is putting additional pressure on net profits. North America and Latin America have partially offset declines in Asia and stagnation in Europe.