Evolution Returns to Growth While Brazil Studio Stays Closed

Evolution ended four consecutive quarters of falling year-on-year revenue with a 3.7% increase in the third quarter of 2026. The supplier generated €526.1 million in the three months to September, although lower profit and the subsequent closure of its Brazilian studio left challenges for the final quarter.

Chief executive Martin Carlesund maintained the company’s full-year margin guidance. Brazil’s betting suspension began after the reporting period, so the third-quarter figures do not show its effects. The company published its interim results on October 23.

Higher Revenue Accompanies Lower Quarterly Profit

Live casino operations contributed €443.0 million, a 2.6% increase from a year earlier. Revenue from random number generator games reached €83.1 million, up 10.1%.

Adjusted EBITDA increased 2.7% to €345.9 million. Its margin narrowed to 65.8% from 66.4%, while net profit declined 3.6% to €243.3 million. Operating profit fell 2.1% to €290.3 million.

Earnings per share rose 4.6% to €1.31 as buybacks and cancellations reduced the average share count. Operating expenses increased 12.0% to €235.9 million, with staffing costs rising as Evolution expanded its studios and added tables.

Exceptional costs totalled €12.1 million. These included a €5.6 million UK Gambling Commission settlement and €6.5 million in legal and termination expenses connected to the abandoned Galaxy Gaming merger. Evolution excluded both items from adjusted EBITDA.

Revenue measured by customer location fell 6.0% in Europe to €336.3 million. North America generated €81.0 million, up 11.0%, while Latin America contributed €76.6 million, an increase of 39.3%.

Brazil Suspension Falls Outside the Reporting Period

President Luiz Inácio Lula da Silva signed Brazil’s prohibition on fixed-odds betting and online casino games on September 25. Evolution shut its São Paulo studio on October 5, one day before licensed gambling websites went offline.

“I think that everyone is flabbergasted about the situation in Brazil,” Carlesund told analysts.

The industry awaits a Supreme Federal Court ruling on the ban’s constitutionality. Evolution remains prepared to reopen its studio at short notice if conditions permit.

Carlesund said Brazil represents “well below half” of Latin American revenue when Evolution estimates the geographical breakdown using player IP addresses. Under that measurement, the region produced €49.0 million in the quarter and grew 23.1% year on year. Those figures use a different geographical basis from the customer-location totals.

Management expects growth elsewhere in Latin America to absorb part of the disruption.

Asian Distribution Problems Continue as New Games Arrive

Evolution’s response to cybercrime affecting its Asian distribution remains ongoing. Carlesund previously described the problem directly: “Someone is stealing our products.”

He reported Asian growth of 0.8% quarter on quarter and 1.6% year on year. Management continues technical work on a long-term response and acknowledges that regional performance could remain volatile.

The company also continues its legal dispute involving Playtech. Playtech commissioned Black Cube to investigate Evolution in 2020. The resulting dossier alleged that customers in prohibited and sanctioned markets could access Evolution games. Evolution sued Black Cube and has sought to hold Playtech accountable in the related defamation proceedings.

Product development continued during the quarter with Monopoly Roll’em and Disco Balls. Evolution also introduced its US-focused Spinning Whale slots brand. Its fourth-quarter plans include bringing Ice Fishing to North America and releasingGame Night under its Hasbro partnership before year-end.

Source:

Evolution Returns to Growth as Brazil Ban Clouds Outlook, livedealers.com, October 26, 2026.