Evolution AB: Another Crash, But I'm Not Changing My Mind

2025-04-30 09:32:04 ET

Summary

• Despite a 16% drop and disappointing Q1 2025 results, I believe Evolution AB (publ) remains a strong buy due to its long-term potential.
• Issues such as cybercrime in Asia and regulatory costs in Europe have temporarily impacted revenues and margins, but demand for EVVTY's games remains robust.
• EVVTY's global expansion and strong product roadmap, including 110 new releases in 2025, demonstrate its commitment to growth and market leadership.
• With a €500 million buyback and a 4% dividend yield, shareholders will be well rewarded, reinforcing my confidence in EVVTY's future.

I had high expectations for Evolution AB (publ) ( EVVTY ) quarterly report and I expected the market to finally recognize its value. But the opposite happened, and this time there are objective data to support the bearish thesis. EVVTY did not grow by double digits in Q1 2025 , and EPS actually fell by 2.80%. The market reaction was violent, a 16% drop....

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