Evolution Q3 revenue slightly misses estimates, margin declines

Evolution AB (publ)

Today 06:39

Overview
Sweden B2B casino supplier's Q3 revenue rose 3.7% yr/yr, slightly missing analyst expectations
Adjusted EBITDA margin for Q3 was 65.8%, down from 66.4% a year ago
Company temporarily closed Brazilian studio due to regulatory uncertainty, expects LatAm growth to offset impact

Outlook
Company to launch Ice Fishing in North America in Q4 2026
Evolution to launch Game Night title before end-2026
Company says Brazil regulatory changes create uncertainty; LatAm momentum expected to offset some impact

Result Drivers
REGIONAL PERFORMANCE - Co said all regions reported qtr-on-qtr growth, with strong yr/yr increases in North America, LatAm and Africa
PRODUCT SEGMENTS - Co said both Live and RNG segments grew yr/yr, with RNG up 10.1% and Live up 2.6%
NEW GAMES - Co launched several new games and a US-focused slots brand during the qtr

Company press release: ID:nMFNqGdqq

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
EUR 526.10 mln
EUR 527.94 mln (8 Analysts)
Q3 EPS
 
EUR 1.31
 
Q3 Net Income
 
EUR 243.30 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 8 "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy."
Wall Street's median 12-month price target for Evolution AB (publ) is SEK712.50, about 12.3% below its October 22 closing price of SEK812.00
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 22 - Sweden's Betsson Q3 revenue rises 10% on casino growth
Oct 20 - Betting giant Flutter to axe up to 1,400 jobs in UK and Ireland as tax hike bites
Oct 21 - French betting group FDJ United's 9M revenue falls on fewer jackpots and tax hikes; cuts FY outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)