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Evolution Gaming reported lower Q1 revenue as weaker channelisation in Europe weighed on performance, while North America and LatAm delivered new revenue highs.
Good to Know
- Q1 net revenue fell 1.5% year-on-year to €513 million.
- Martin Carlesund called Europe “the main headache right now”.
- Evolution plans to invest most heavily in the US and LatAm in 2026.
Evolution Gaming Points To Europe As Q1 Drag
Evolution Gaming blamed weaker channelisation across Europe after Q1 net revenue slipped 1.5% year-on-year to €513 million. Group CEO Martin Carlesund told analysts that regional trends were uneven, with Europe creating the largest pressure.
Europe still carries long-term value for Evolution, but Carlesund said regulation in some markets has pushed players toward unregulated sites instead of keeping them inside licensed channels. He singled out the UK, Netherlands and Sweden as key weak spots.
“Europe is not performing well at the moment,” Carlesund said.
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Based on customer IP data, Carlesund estimated that 48% of Evolution revenue came from regulated markets in Q1. He argued that falling channelisation hurts licensed operators and also removes safer play conditions for more exposed players.
The company has already added tighter ring-fencing across Europe after a UK Gambling Commission investigation into illegal market activity. Carlesund has also said the work carried a cost in 2025 and hurt overall profitability.
Growth came from elsewhere. North America and LatAm both posted record revenue, with North America growth improving from Q4. Carlesund said dollar-based year-on-year growth in North America reached about 21%, compared with 19% in Q4.
Carlesund now wants more investment aimed at the Americas. Evolution recently launched new titles and acquired a developer in Argentina, giving LatAm extra weight in the company plan for 2026.
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“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 grew from a smaller base. Carlesund said fresh games have performed well there, while Red Baron has beaten expectations and the RMG offer has started to get traction.
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