Refile: Sweden's Evolution Q2 revenue misses estimates on regional volatility, increased cybercrime activity
REFILE-Sweden's Evolution Q2 revenue misses estimates on regional volatility, increased cybercrime activity Corrects spelling error and adds dropped word in headline
Overview
Sweden B2B casino solutions provider's Q2 2026 revenue slightly missed analyst expectations, down 1.2% yr/yr
Q2 EBITDA slightly beat analyst estimates, margin steady at 65.9%
Company cites regional volatility, with Asia declining and Europe returning to growth
Outlook
Company highlights ongoing volatility in Asia, citing increased cybercrime activity as a concern
Evolution remains cautious about low channelization rates in Europe despite recent growth
Company sees continued positive momentum in Latin America and steady growth in North America
Result Drivers
REGIONAL VARIATION - Europe returned to quarter-on-quarter growth, while Asia saw a 3.7% quarter-on-quarter decline due to regional volatility and increased cybercrime activity, per CEO
PRODUCT LAUNCHES - New game show titles and localised offerings, such as Ice Fishing and Monopoly Live, attracted new audiences and supported growth in several markets
LATIN AMERICA AND NORTH AMERICA GROWTH - Latin America delivered 26.3% yr/yr growth and North America grew 9.5% yr/yr, supported by studio expansions and new product launches
Company press release: ID:nMFN8Rd5f
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | EUR 517.80 mln | EUR 520.46 mln (7 Analysts) |
Q2 EPS |
| EUR 1.27 |
|
Q2 Net Income |
| EUR 251.40 mln |
|
Q2 EBITDA | Slight Beat* | EUR 341 mln | EUR 340.95 mln (6 Analysts) |
*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 5 "strong buy" or "buy", 6 "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 SEK645.00, about 6.5% below its July 16 closing price of SEK689.60
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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.)