Evolution reports strong Q3 results despite challenges 

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Evolution reports strong Q3 results despite challenges 

Despite a strike in its Georgian studio and cyber attacks in Asia, Evolution reported strong Q3 revenues with a 15% NGR increase.

The 15% NGR increase equals to €519.4m. Total operating revenues increased by 27.9%, making €579m. Due to Evolution’s introduction of additional tables in Colombia and the Czech Republic during the quarter, live casinos saw double-digit growth of 16% year-on-year. 

Martin Carlesund, CEO of Evolution, said:

“We are beginning to see the results of our incremental improvements in the RNG offering. The supplier initiated a turnaround effort of its RNG product earlier in the year, increasing its game releases and developing new features to improve the gameplay experience.”

The strike in Georgia, which began in July, currently left the studio at 60% capacity with 550 employees on strike. Despite receiving help from other studios. The Georgian studio has received negative effects from the strike in both growth and margins, as Georgia represents 40% of Evolution’s operations.

Martin Carlesund commented:

“We are able to offset lost capacity using other studios to limit the impact on our customers, but overall, the disruption has had a negative effect,” he said. The situation is now described as stable, but the danger is that trouble continues to disrupt a Georgian workforce of 7,000 out of 18,000 across the group (40%), albeit only 550 (8%) of the workforce went on strike during the quarter,” it said in a note on Evolution’s Q3 earnings.”

Evolution’s performance in Asia

Asia has been facing different cyber attacks against video distribution. Despite challenges, the company saw a 17.5% revenue increase in Asia, rising from €172.1 million to €202.2 million. According to Carlesund, the attacks may escalate, potentially linked to the closure of the POGO sector in the Philippines, indicating that Evolution’s previously smooth growth in the region may face new scrutiny.

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