Evolution reports modest Q3 growth as CEO calls quarter uneventful

Evolution AB has reported a modest increase in third-quarter net revenue, with chief executive Martin Carlesund describing the three months as "uneventful", according to SBC News.

The Swedish-listed supplier saw net revenue rise 3.7% year-on-year to €526.1m (£440m), helped by 10% growth in its RNG games division. Adjusted EBITDA climbed 2.7% to €345.9m from €336.9m, though the margin slipped from 66.4% to 65.8%. Operating profit fell by €6.3m to €290.3m.

The quarter closed with Brazil's government abolishing its regulated betting and gambling market, a move Evolution responded to by temporarily closing its Brazilian studio earlier this month. The company said Brazil is not a major market for the business and that growth from elsewhere in Latin America is expected to offset the impact over time.

Carlesund was more pointed on the subject during Evolution's investor call. "It's highly unfortunate that a populist agenda can overthrow a regulatory framework that has only been in place for one and a half years," he said, adding that the company has "the advantage of our global scale and size" and has handled similar regulatory shifts in the market before.

"For now, we have closed the studio, but we are ready to reopen on short notice," he said. "If Brazil reopens its market, we are ready to accelerate."

Regionally, Europe and Asia posted slight sequential growth, though European revenue fell 4.7% year-on-year, from €182.3m to €173.7m. North America grew 13.6% to €84.3m, up from €74.2m in the third quarter of 2025. Latin American revenue rose 23.1% to €49m from €39.8m, while revenue from Africa and other territories increased to €27.1m from €21.9m.

Carlesund noted that all regions had contributed to growth on a sequential basis for the first time since 2024. "Q3 2026 has been uneventful, maybe even a little boring, and business as usual," he said. "It's a state that I like. It helps us to focus on things that matter."

Evolution confirmed that its long-running legal dispute with rival supplier Playtech is expected to continue at least through 2026. The company left its full-year outlook unchanged, but Carlesund told investors the group would have a "spectacular roadmap" for a "spectacular" 2027.

Evolution's share price was up 2.64% on the day of the results to SEK 833.40 (£62.09), taking its gain for the year so far to 33.5%.