Evolution shares fall on Q3 miss in revenue, EBITDA

Evolution AB (publ)

26/10/2023 08:57

** Shares in Evolution  EVOG.ST  are down 10% after the
Swedish online gaming company posted Q3 revenue and EBITDA below
analysts' estimates
    ** J.P. Morgan cites Q3 revenue growth that came in below
expectations, especially in Asia and the U.S., as the likely
cause for today's shares underperformance, adding that Q3
organic growth was slower than expected
    ** "We would expect LSD % cuts to FY 23 consensus
revenue/EBITDA estimates on the back of the release, driven by a
slower growth profile" - JPM adds 
    ** Jefferies points that Evolution flagged several
headwinds: demand exceeding supply, with studios and 
recruitment behind schedule; FX headwinds
    ** It adds that investors will also focus on further
deceleration in North America growth to +9% (was +56% in 1Q,
+20% in 2Q); no mention of a share buyback (€813m net cash)
    ** Share on track for its worst day since May 2022

 (Reporting by Anna Jaworska-Guidotti)
 ((anna.jaworska-guidotti@tr.com))