Evolution expects the Gambling Commission’s investigation into the supplier’s UK licence to be completed by the end of this year.
Speaking to analysts during the group’s Q3 earnings call on Thursday, Evolution CEO Martin Carlesund hinted at the December deadline, although he said the Gambling Commission had not specified a timeline for the review.
The GC commenced its review in December, after discovering the supplier’s games were being provided to unlicensed operators in the country. The case indicated a wider crackdown on supplier compliance in the UK, as the Commission stepped up enforcement against the growing black market.
Previously Gambling Commission CEO Andrew Rhodes had warned operators to step up their monitoring of business relationships, to ensure partners were not facilitating illegal gambling.
“When it comes to the UK gambling Commission timeline unfortunately, I don’t have any other information. It’s in the hands of the regulator and our estimation is that it will be by the end of this year,” Carlesund told analysts.
Q3 revenue dips on troubles in Asia
In what has been a pivotal week for the group, as it unveiled that Playtech had commissioned a secret investigation against it, Evolution reported its net revenue for Q3 had decreased by 2.4% to €507.1 million.
Carlesund blamed Asia for its continued impact on the group’s earnings, as it continued to fight targeted cyber-attacks during the period.
He also looked to the Philippines iGaming market, noting it had been “very volatile” during its early stages.
“Other markets such as India, which in our view show signs of moving towards regulation, create a higher level of uncertainty than before,” he said in a statement.
However, the group reported quarter-on-quarter growth in Europe after a couple of challenging quarters during which the market had been impacted by ring-fencing actions to prevent Evolution’s games from being used in grey markets.
Europe revenue hit €182.2 million in Q3, up from €180.2 million in Q2. But in a year-on-year comparison, Europe was down 6.5%. The ring-fencing exercise commenced after the Commission’s review was launched. The supplier initiated the project to ensure it was meeting compliance requirements across Europe and not contributing to the growing back market.
EBITDA for the period was down 18.9% to €337 million, while EBITDA margin hit 66.4%, down from 71.7% last year. Profit landed at €252.3 million, down 23.2%.
Evolution CEO Martin Carlesund said he expects the Gambling Commission to provide an update on its review of Evolution’s licence in December.