Evolution revenue rises 3.7% to €526.1 million despite lower profit
Key Facts
Evolution increased third-quarter 2026 revenue by 3.7% to €526.1 million, compared with €507.1 million a year earlier, while profit for the period fell to €243.3 million from €252.3 million, according to the company’s interim report for the months ended in September. Earnings per share, by contrast, rose to €1.31 from €1.25 in the year-earlier period. Adjusted earnings before interest, taxes, depreciation and amortization increased 2.7% to €345.9 million from €336.9 million. But the margin on those earnings fell to 65.8% from 66.4%, putting revenue and adjusted operating earnings growth alongside declines in profit and its margin.
For the first nine months of 2026, revenue was €1,557.0 million, up 0.3% from €1,552.3 million in the same period a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization fell 0.2% to €1,022.2 million from €1,024.1 million, and the margin was 65.7% versus 66.0%. The comparison shows third-quarter growth outpaced cumulative revenue growth, while adjusted earnings for the nine months remained slightly below the prior-year level. In the second quarter, revenue had fallen 1.2% year on year to €517.8 million, while the earnings-before-interest, taxes, depreciation and amortization margin was 65.9%. Revenue growth therefore returned in the third quarter after declining in the previous quarter, while the margin remained below the second-quarter level.
The chief executive said all regions posted quarter-on-quarter growth for the first time since 2024, alongside annual growth for the group. Europe recorded quarterly growth of 0.4%, while Asia posted 0.8%. Year on year, revenue rose 13.6% in North America, 23.1% in Latin America and 23.7% in Africa. The company described performance in other markets as remaining strong, with growth varying across regions; progress in Europe and Asia was limited compared with the annual growth rates in the other three regions. Management said the quarter was "quiet, with a focus on core business and stable to good development across our markets."
Both of the company’s segments posted annual growth during the quarter, with live casino increasing 2.6% and digital games 10.1%, according to Evolution. The company launched new games including Monopoly Roll’em and Disco Balls, and also launched the Spinning Whale brand, aimed at the U.S. market. The segment performance points to broader growth across the company’s activities, with digital games advancing faster than live casino during the period. As part of its near-term expansion plans, the company said Ice Fishing will launch in North America during the fourth quarter of 2026. It is also preparing to launch Game Night before year-end as part of its partnership with Hasbro.
Regulatory developments in Brazil added uncertainty to the outlook for regional business. Evolution said the country’s regulatory framework deteriorated in early October following a presidential decision, and that its Brazilian studio was temporarily closed, while the final outcome of the decision remains unclear. Based on the company’s estimate of revenue distribution using players’ internet addresses, Brazil accounts for far less than half of Latin American revenue. It said momentum in the rest of the region remains strong and will offset part of the impact. The issue comes as Latin American revenue posted annual growth of 23.1% in the third quarter, according to the company.
Chief Executive Martin Carlesund and Chief Financial Officer Joakim Andersson were scheduled to present the report and answer questions on 23 October 2026 at 09:00 Central European Summer Time. The company set 4 February 2027 as the date for announcing its 2026 full-year report. In a separate disclosure, Evolution announced the repurchase of 447,327 shares during the period from 5 to 9 October 2026. These dates give investors two upcoming points to track the company’s results and updates, after a quarter in which revenue rose year on year and quarterly growth regained geographic breadth, despite lower period profit and a decline in the adjusted earnings margin.