RNG offering outperforming live dealer for the first time
For the third quarter of 2025, Evolution generated revenues of 507.1m and EBITDA of EUR 336.9 million, falling to a year-on-year revenue decline of 2.4 per cent and an EBITDA margin of 66.4 per cent.
Revenue growth at constant currency is estimated to be 3.9 percent. The live dealer sector generated a 3.4 per cent decline year-on-year, which was held back by the development in Asia. For the first time ever, Evolution’s RNG offering is outperforming Live in terms of growth with Nolimit City, doing very well in the quarter. In the third quarter, Evolution launched the Sneaky Slots brand, which was developed from scratch and will fill a gap in game style between NLC and NetEnt.
The company has continued to deliver on its full-year roadmap of more than 110 new releases. Within Live, during the third quarter, it launched the highly anticipated Ice Fishing, the company’s first-ever speed game show. On the RNG side, a total of 22 new titles were launched including Gator Hunters, a direct sequel to the massively successful Duck Hunters.
CEO Martin Carlesund said: “We have not been satisfied with the growth so far this year and that sentiment has not changed in this quarter. However, a difference compared to the first half of the year is that performance in Europe, North America and Latin America is decent to good.
“Unfortunately, revenue development in Asia is still very far from satisfactory. We continue to fight the cyber criminality that has affected our business there for too long, and during the quarter we didn’t progress as much as we would have wanted. The fight is a constant balancing act between taking countermeasures that are too stringent – which create issues for legitimate end-users – and too light, which don’t yield the desired effects. During the third quarter, we over-extended our countermeasures and our revenue was affected negatively.”
“Asia is also affected by the newly regulated market Philippines which initially has been very volatile, as well as other markets such as for example India that in our view show signs of moving towards regulation, creating a higher level of uncertainty than before. Despite the volatility, our newly opened studio in the Philippines has been off to a great start, showcasing our commitment to the region.”
“Turning to a clear positive: Europe is back to growth quarter-on-quarter. In the second quarter, we saw the full effects from our ring-fencing measures which provided a new baseline to grow from. Despite a summer without any major sports events, we saw good momentum even in the more mature regulated markets compared to the first part of the year.”
“North America continues to deliver two-digit growth year-on-year but a more modest increase quarter-on-quarter. We saw strong investments from our customers in the quarter, with several larger dedicated studio environments going live across both the USA and Canada. We have also seen some exciting commercial milestones over these months, such as the deal with Gaming Arts where we will explore the potential to move some of our most popular online slot titles to land-based casinos, and the re-launch of Ezugi as our second Live Casino brand in the USA.”
“Following a slower than expected start to the year, growth in Latin America is once again picking up as operators and players are getting accustomed to the new regulation in Brazil. As highlighted already in the Q2 report, we opened our first Live Casino studio in São Paulo in July, and we are already looking to expand it.”
“Despite a material revenue shortfall in Asia, we have increased our EBITDA margin in the quarter thanks to the progress in the rest of the world combined with a disciplined approach to our cost base. We are now within our full-year estimate of 66-68 percent, and we expect to stay in this range in the fourth quarter.
“As there are currently a lot of regulatory movements across our markets, I would like to take the opportunity to explain Evolution’s general approach to regulation. Our market leadership is not only dependent on having the most innovative products and the best talent, but it is also dependent on our robust compliance framework. We always want to do what is right, and we do that by closely following legal developments, collaborating with regulatory experts and adapting accordingly. In essence, our goal is to stay ahead of regulatory developments while maximizing business potential. Let’s take sweepstakes in the US as a good example. We offer sweepstakes in states where it is not prohibited or where there are no legal uncertainties based on our regular dialogue with regulators and policy makers. If conditions change, as they did in California during the quarter when a city attorney made a personal interpretation of the law, we adapt, whether we agree with the interpretation or not.
“Four years ago, a defamatory and false report on Evolution was published and disseminated that caused substantial harm to the company and its shareholders. As a result of a lengthy legal process to identify the source of this report, we now know that Playtech, a competitor of ours, paid Black Cube, a controversial intelligence firm, to produce the report. At Evolution, we will always go to all lengths to protect our company, our brand, our colleagues and our shareholders. Whether it is our efforts to fight cyber criminals in Asia, the resolution of the Georgian strike, or the action we are taking against Playtech and their associates who sought to harm Evolution, we will deploy whatever time, effort and money necessary to defend our firm and its exciting future. We are dedicated to setting a strong course for our company and our industry, and you can count on us to continue doing so.”
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RNG offering outperforming live dealer for the first time For the third quarter of 2025, Evolution generated revenues of 507.1m and EBITDA of EUR 336.9 million, falling to a year-on-year revenue decline of 2.4 per cent and an EBITDA margin of 66.4 per cent. Revenue growth at constant currency is estimated to be 3.9 percent….
The post Evolution suffers year-on-year decline with development of Asian market taking time appeared first on G3 Newswire.