Evolution AB (publ) (EVO) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to the presentation of Evolution's Interim report for the first quarter of 2026. My name is Martin Carlesund and I'm the CEO of Evolution. With me, I have our CFO Joakim Andersson. As always, I will start with some comments on our performance and then hand over to Joakim for a closer look at our financials. After that, I will conclude an outlook and then we will open up for your questions. Next slide, please. So let's start with the financial and operational highlights in the quarter. Net revenues were Euro 513 million corresponding to year-on-year decline of 1.5%. EBITDA came in at 335.3 million corresponding to a margin of 65.4%. The regional development was somewhat mixed in the quarter. Europe is not performing well at the moment, whereas Latam is having a great momentum. North America continues its steady growth at a slightly higher pace than in Q4. In Asia, we made some further progress on combating cybercrime. Live revenue was hurt by the development in Europe and declined 3.1% on year-on-year basis. R&G took a step forward with a higher growth than what we have seen in the past quarters, up 8.1% year-on-year. During the quarter, we have continued to expand our student network with new additions in Latvia, the US, and Argentina. We have also started to deliver on our amazing product roadmap for 2026. I will talk more about that later in the presentation. Now, next slide, please. If we then move to our operational KPIs, first consisting of headcount and then game rounds index. On headcount, we are growing by 2.9% year-on-year and 1.7% on quarter-on-quarter basis. We are on a good path with expansion and we will continue to optimize the distribution and cost mix throughout 2026. The game rounds index can be seen as a general indic...