Evolution Gaming Reports Lower Q1 Revenue

(AsiaGameHub) –   Evolution Gaming announced a decline in its first-quarter revenue, attributing the drop to reduced channelisation in Europe impacting results. In contrast, North America and Latin America achieved new revenue records.

Good to Know

• First-quarter net revenue decreased by 1.5% compared to the previous year, totaling €513 million.
• Martin Carlesund described Europe as “the primary concern at present.”
• The company intends to focus its most significant investments on the United States and Latin America in 2026.

Evolution Gaming Points To Europe As Q1 Drag

Evolution Gaming cited weaker channelisation in Europe for a 1.5% year-on-year decline in Q1 net revenue to €513 million. Group CEO Martin Carlesund informed analysts that performance varied by region, with Europe applying the most significant downward pressure.

While Europe remains valuable long-term, Carlesund stated that regulatory measures in certain markets have diverted players to unlicensed sites rather than retaining them within official channels. He identified the UK, the Netherlands, and Sweden as particular areas of weakness.

“Europe is not performing well at the moment,” Carlesund said.

Using customer IP data, Carlesund estimated that 48% of Evolution’s Q1 revenue originated from regulated markets. He contended that declining channelisation damages licensed operators and reduces safer gambling protections for vulnerable players.

The company implemented stricter ring-fencing measures in Europe following a UK Gambling Commission probe into illicit market activity. Carlesund noted these efforts incurred costs in 2025 and negatively affected overall profitability.

Growth was driven by other regions. Both North America and Latin America reported all-time high revenues, with North American growth accelerating from the fourth quarter. Carlesund said year-on-year growth in North America, measured in dollars, was approximately 21%, up from 19% in Q4.

Carlesund is now directing more investment toward the Americas. Evolution’s recent launch of new games and its acquisition of an Argentine developer have increased Latin America’s importance in the firm’s 2026 strategy.

“The US and LatAm are where we will invest the most in 2026. Both regions have high potential with life still being in the early days,” Carlesund said.

Africa also experienced growth from a smaller starting point. Carlesund reported that new games are performing strongly there, the Red Baron title has exceeded expectations, and the real-money gaming offering is gaining momentum.