Q1 2026 Evolution Gaming Group AB Earnings Call
Speaker #1: Your line is muted. Call recording is on.
Speaker #2: Welcome to Evolution. Q1 report 2026 presentation. During the Q&A session, participants are able to ask questions by dialing pound (#) then 5 on their telephone keypad.
Operator 2: Welcome to Evolution Q1 2026 Report Presentation. During the Q&A session, participants are able to ask questions by dialing #5 on their telephone keypad. Now I will hand the conference over to the speakers, CEO Martin Carlesund and CFO Joakim Andersson. Please go ahead.
Speaker #2: Now I will hand the conference over to the speakers . CEO Martin Carlesund and CFO Joakim . Please go ahead
Speaker #3: 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.
Martin Carlesund: Good morning, everyone. Welcome to the presentation of Evolution's interim report for Q1 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. Let's start with the financial and operational highlights in the quarter. Net revenues were EUR 513 million, corresponding to year-on-year decline of 1.5%. EBITDA came in at EUR 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 great momentum.
Speaker #3: With me , I have our CFO , Joakim Andersson . As always , I will start with some comments on our performance and then hand over to joaquinm for a closer look at our financials After that , I will conclude and our outlook .
Speaker #3: 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.
Speaker #3: Net revenues were EUR 513 million, corresponding to a year-on-year decline of 1.5%. EBITDA came in at EUR 335.3 million, corresponding to a margin of 65.4%.
Speaker #3: The regional development was somewhat mixed in the quarter. Europe is not performing well at the moment, whereas Latam is having great momentum.
Speaker #3: North America continues its steady growth at a slightly higher pace than in Q4. In Asia, we made some further progress on combating cybercrime.
Martin Carlesund: 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. RNG took a step forward with 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 studio 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 presentation. Now, next slide, please. If we now 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.
Speaker #3: Live revenue was hurt by the development in Europe and declined 3.1% on a year-on-year basis. RNG took a step forward with a higher growth than we have seen in the past quarters.
Speaker #3: Up 8.1% year on year. During the quarter, we have continued to expand our studio network with new additions in Latvia.
Speaker #3: The US and Argentina have also started to deliver on our amazing product roadmap for 2026. I will talk more about that later in the presentation.
Speaker #3: Now, next slide, please. If we now 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 a quarter on quarter basis.
Martin Carlesund: 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 indicator of activity throughout our network over time. For an individual quarter, it can vary quite a lot and does not always correlate with revenue development. The long-term trend should be an increase in game rounds as game sessions in general get faster and with smaller bets. I'm satisfied with the development in Q1, especially with the backdrop of the development in Europe. Next slide, please. In the last report, we introduced a real breakdown of revenues based on our customers' location, where Europe is dominant. Compared to Q4, North America and Latin America have grown their respective share of the total revenue, which reflects the overall development in Q1.
Speaker #3: 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 indicator of activity throughout our network.
Speaker #3: Over time . For an individual quarter , it can be varied quite a lot and does not always correlate with revenue . Revenue development .
Speaker #3: The long-term trend should be an increase in game rounds, as game sessions in general get faster and with smaller bets.
Speaker #3: I'm satisfied with the development in Q1, especially with the backdrop of the development in Europe. Next slide, please. In the last report, we introduced a real breakdown of revenues based on our customers' location, where Europe is dominant compared to the fourth quarter.
Speaker #3: North America and Latin America have grown their respective share of the total revenue, which reflects the overall development in the first quarter.
Martin Carlesund: As we require all our customers to carry a license in regulated jurisdictions, all our revenues are regulated. You also see a revenue split based on our customers and their players, our customers' customers, which is an estimation based on the IP number of players received from our customers and purchased by a third-party geo information. This is the breakdown of the revenues we have included for several years. Seen from that perspective that all our customers are regulated, our revenue is regulated to 100%. If instead looking at the estimation of the geo position and approximation of revenue based on our customers' customers' players' IP address, about 48% of the estimated revenue is regulated. Next slide, please. I will now give you a few comments on each of the major regions based on the estimation of revenue based on our customers' customers' IP number.
Speaker #3: As we require all our customers to carry a license in regulated jurisdictions, all our revenues are regulated. You also see a revenue split based on our customers and their players.
Speaker #3: Our customers, customer, which is an estimation based on the IP number of players received from our customers and purchased by a third party.
Speaker #3: Geo information . This is the breakdown of the revenues we have included for several years . Seen from that perspective , that all our customers are regulated , our revenue is regulated to 100% .
Speaker #3: If instead , looking at the estimation of the geo position and approximation of revenue based on our customers , customers , players , IP address about 48% of the estimated revenue is regulated Next slide please I will now give you a few comments on each of the major regions .
Speaker #3: Based on the estimation of revenue , based on our customers , customers , IP number . As already mentioned , Europe did not do well and continued to decline quarter on quarter , largely due to regulatory volatility and some which hurt our player activity .
Martin Carlesund: As already mentioned, Europe did not do well and continued to decline quarter-on-quarter, largely due to regulatory volatility and subjectivity, which hurt our player activity. It has now also been almost a year since we introduced our extensive ring-fencing measures, which ensure that the players can only reach Evolution content from licensed operators within their respective markets. It was the right thing to do, and in a world of perfect regulation, it would not have caused any issues. However, due to the fact that regulation in some markets fails to strike the right balance between player protection and entertainment, players continue to access unregulated operators, and channelization is decreasing fast and significantly. This harms the total business, and the most vulnerable players lose the player protection of playing on regulated operators and certified products from Evolution.
Speaker #3: It has now also been almost a year since we introduced our extensive ring-fencing measures, which ensure that the players can only reach Evolution content from licensed operators within their respective markets.
Speaker #3: It was the right thing to do, and in a world of perfect regulation, it would not have caused any issues. However, due to the fact that regulation in some markets fails to strike the right balance between player protection and entertainment, player...
Speaker #3: Continued access to unregulated operators and channelization is decreasing fast and significantly. This halves the total business, and the most vulnerable players lose their play protection or are playing on regulated operators and certified products from Evolution.
Martin Carlesund: Looking at the operational side, we have opened a second studio in Riga in the quarter. It is currently the home of our Always 6 Blackjack tables, but later this year it will host both game shows, Game Night, and Monopoly Filthy Rich. Looking at Asia, this is now the second quarter in a row with quarter-on-quarter growth. This is, of course, a positive signal. We are in a better place right now than a year ago. However, as the balance has been somewhat of a cat-and-mouse game, we remain cautious. Next slide, please. Both North America and LATAM reported yet another all-time high revenues. Growth rate in North America improved compared to Q4. It looks somewhat soft in our reporting currency, euro, but in US dollars, year-on-year growth was roughly 21% compared to 19% in Q4.
Speaker #3: Looking at the operational side , we have opened a second studio in Riga in the quarter . It is currently the home of our OS six blackjack tables , but later this year it will host both game shows .
Speaker #3: Game night and Monopoly . Filthy Rich . Looking at Asia , this is now the second quarter in a row with a quarter on quarter growth .
Speaker #3: This is of course , a positive signal and we are in a better place right now than a year ago . However , as the challenge has been somewhat of a cat and mouse game , we remain cautious .
Speaker #3: Next slide, please. Both North America and LatAm reported yet another all-time high in revenues. The growth rate in North America improved compared to the fourth quarter.
Speaker #3: It looks somewhat soft in our reporting currency . Euro , but in US dollars year on year growth was roughly 21% compared to 19% in Q4 .
Martin Carlesund: In the quarter, we launched several MONOPOLY-themed titles, which have been off to a great start. Last week, we also launched MONOPOLY Live in Connecticut, which is an important milestone as we know that the MONOPOLY franchise is particularly strong in the US market. It will be rolled out in additional states going forward. We have also completed the construction of a second studio in Michigan, located in Grand Rapids. It's a milestone as well. It's now going through inspections and regulatory approvals, and we are expecting to launch it in the next few months, hopefully earlier. Looking at the regulation, we note two positive developments. In the US, the Maine governor has now signed the iGaming bill into law. In Canada, Alberta will regulate its iGaming market in July.
Speaker #3: In the quarter , we launched several monopoly themed titles , which have been off to a great start last week . We also launched Monopoly Live in Connecticut , which is an important milestone as we know that the monopoly franchise is particularly strong in the US market .
Speaker #3: It will be rolled out in additional states going forward. We have also completed the construction of a second studio in Michigan, located in Grand Rapids.
Speaker #3: It's a milestone as well. It's now going through inspections and regulatory approvals, and we are expecting to launch it in the next few months.
Speaker #3: Hopefully earlier . Looking at the regulation , we note two positive developments in the US . The main governor has now signed the iGaming bill into law in Canada , Alberta will regulate its iGaming market in July .
Martin Carlesund: We have had presence in the province since 2021, serving the only available online gaming service run by the local government with live casino games. Now the market will open up for more operators. Last note on North America is the ongoing process to acquire Galaxy Gaming, where we are still working on the necessary approvals before the 17 July deadline. We don't have any new information to share today. More than that, the process is ongoing. Latin America is doing really well at the moment. A highlight from the quarter is that we have completed the acquisition of a live studio in Argentina from a competitor who has decided to withdraw from the market. The studio will form the base for further growth in Argentina, and we are now adapting it to Evolution standard.
Speaker #3: We have had presence in the province since 2021 , serving the only available online gaming service run by the local government , with live casino games now , the market will open up for for more operators .
Speaker #3: Last note on North America is the ongoing process to acquire Galaxy Gaming, where we are still working on the necessary approvals before the 17th of July.
Speaker #3: Deadline . We don't have any new information to share today . More than that , the process is ongoing . Latin America is doing really well at the moment .
Speaker #3: A highlight from the quarter is that we have completed the acquisition of a live studio in Argentina from a competitor who has decided to withdraw from the market.
Speaker #3: The studio will form the base for further growth in Argentina , and we are now adapting to evolution standards in Brazil . We continue to perform well after regulator , after regulation , which was about a year ago .
Martin Carlesund: In Brazil, we continue to perform well after regulation, which was about a year ago. We have launched a localized version of Crazy Time that is sure to attract a lot of new players in Brazil. LATAM truly is exciting. We're in full expansion mode. In addition to Argentina, we'll continue to expand our presence in Brazil and in Colombia to fully leverage the big market potential. With that, we don't have a specific chart for other markets, which mainly comprise of Africa. It continues to grow from a small base. Crash games are widely popular in the region, and our recently launched Red Baron has so far exceeded expectations. Also, our RNG offering is starting to gain traction. To conclude this slide, the US and LATAM are where we will invest the most in 2026. Both regions have high potential, with Live still being in early days. Next slide, please.
Speaker #3: We have launched a localized version of crazy time that is sure to attract a lot of new players in Brazil . Latam Chile is exciting , is exciting .
Speaker #3: We're in full expansion mode in addition to Argentina , we'll continue to expand our presence in Brazil and in Colombia to fully leverage the big market potential .
Speaker #3: With that , we don't have a specific short for other markets , which mainly comprise of Africa . It continues to grow from a small base .
Speaker #3: Crash gains are widely popular in the region , and our recently launched Red Baron has so far exceeded expectations . Also , our R&D offering is starting to gain traction .
Speaker #3: To conclude this slide, the US and Latam are where we will invest the most in 2026. Both regions have high potential, with Live still being in early days.
Speaker #3: Next slide, please. As you are aware, we have a spectacular roadmap for 2026, where we will take fun and entertainment to yet another level.
Martin Carlesund: As you are aware of, we have a spectacular roadmap for 2026, where we will take fun and entertainment to yet another level. Over the past month, we have made some initial releases like Always 6 Blackjack and Dragon Tiger, but the big splash is still ahead of us. Based on our exclusive partnership with Hasbro, we will continue to expand our portfolio of Monopoly games, and the closest in time for release are MONOPOLY Roulette and Monopoly Rollin'. Monopoly is an extremely strong franchise that is continuously gaining more popularity, and I think that it will be an important piece of the puzzle when continuing to push the boundaries for entertainment. Another exciting development is the introduction of a new feature that we call Side Play. It will allow players to enjoy slots alongside the live game attraction.
Speaker #3: Over the past months , we have made some initial releases . Like always six , Blackjack and Dragon Dragon , but the Big splash is still ahead of us .
Speaker #3: Based on our exclusive partnership with Hasbro, we will continue to expand our portfolio of Monopoly games and announce those closest in time for release.
Speaker #3: Our Monopoly Roulette and Monopoly Rolling. Monopoly is an extremely strong franchise that is continuously gaining more popularity, and I think that it will be an important piece of the puzzle when we continue to push the boundaries for entertainment.
Speaker #3: Another exciting development is the introduction of a new feature that we call Side Play. It will allow players to enjoy slots alongside the live game attraction.
Martin Carlesund: With just a click, you will be able to select the slots from our RNG brand, such as No Limit City and Atom. Within the Live casino space, a mini lobby will make personalized recommendations to keep content relevant and engaging. I think this is a great feature as it brings together live casino and slots in one streamlined view, the best of both worlds, and yet another feature and advantage of OSS one-stop-shop. Since Evolution was founded 20 years ago, we've been obsessed with the end-user satisfaction and the entertainment factor. Delivering the satisfaction is not just about innovation, it's about getting the fundamentals right every single day. Top-notch gameplay, a flawless lobby, world-class studios, a game integrity that sets the global benchmark. We often highlight what's new each quarter because innovation is exciting, but I want to be crystal clear.
Speaker #3: With just a click, you will be able to activate selected slots from our R&D brands such as Nolimit City and Latam. Within the live interface, a mini lobby will make personalized recommendations to key content that is relevant and engaging.
Speaker #3: I think this is a great feature, as it brings together live casino and slots in one streamlined view. The best of two worlds, and yet another feature and advantage of OSS.
Speaker #3: One stop shop . Since evolution was founded 20 years ago , we've been obsessed with the end user satisfaction and the entertainment factor , and delivering the satisfaction is not just about innovation , it's about getting the fundamentals right .
Speaker #3: Every single day . Top notch gameplay , a flawless lobby , world class students , a game , integrity , that sets the global benchmark .
Speaker #3: We often highlight what's new each quarter because innovation is exciting , but I want to be crystal clear these basics are absolutely crystal critical for the experience , because if the fundamentals slips and you to notice immediately .
Martin Carlesund: These basics are absolutely critical for the experience because if the fundamental slips end users notice immediately. With that said, 2026 is going to be another great year of innovation, while we also continue to enhance overall experience with playing our games. Combination of the two will ensure that we will bring the most entertaining experiences to the players and increase the gap to competition more than ever before. With that, I will hand over to Joakim for a closer look at our financials. Next slide, please.
Speaker #3: So with that said , 2026 is going to be another great year of innovation . While we also continue to enhance overall experience with our with playing our games , combination of the two will ensure that we will bring the most entertaining experiences to the players and increase the gap to competition .
Speaker #3: More than ever before . With that , I will hand over to Joachim for a closer look at our financials . Next slide please Thank you .
Joakim Andersson: Thank you, Martin. As usual, I have a few slides that will focus on the key highlights as we go through them. Starting with this slide eight, which shows our revenue and EBITDA development over time. If you look at the data on the far right, we can again see the Q1 revenue of EUR 513 million represented by the blue bar, the EBITDA of EUR 335.3 million in the gray bar, and our EBITDA margin of 65.4% shown by the line above. Let's go to the next slide. Here we have a more detailed look of our profit and loss statement. As before, I have highlighted the key takeaways from this slide, and I will talk you through them one by one. First, the net revenues, of course, amounted to EUR 513 million, which is down 1.5% year on year, but practically flat quarter on quarter.
Speaker #3: Martin . As usual , I have a few slides and we'll focus on the key highlights as we go through them . Starting with this slide .
Speaker #3: Slide eight, which shows our revenue and EBITDA development over time. If you look at the data on the far right, we can again see the Q1 revenue of €513 million represented by the blue bar.
Speaker #3: The EBITDA of €335.3 million is shown in the gray bar, and our EBITDA margin of 65.4%, shown by the line above. Let's go to the next slide. And here we have a more detailed look at our profit and loss statement.
Speaker #3: As before , I have highlighted the key takeaways from this slide , and I will talk you through them one by one . First , the net revenues , of course , amounted to three 513 million , which is down 1.5% year on year , but practically flat quarter on quarter .
Joakim Andersson: Second, total operating expenses were EUR 220 million, which is 1.3% higher than Q1 last year and up 2.5% quarter-on-quarter. Personnel expenses increased by 4% quarter-on-quarter. However, on a rolling 12-month basis, we continue to see a deceleration in the growth rate each quarter. Third, profit for the period amounted to EUR 251.9 million, and as the fourth highlight, our earnings per share after dilution amounted to EUR 1.26. Let's move on to the next slide where I show you the development of our cash flow. First, on the left-hand side, we show our operating cash flow after investments. This amounted to EUR 311 million for the quarter, representing a solid improvement compared with Q4, partly driven by a recovery in working capital. The last 12 months cash conversion remains strong and stays around the long-term trend with 81% in the quarter.
Speaker #3: Second, total operating expenses were €220 million, which is 1.3% higher than Q1 last year and up 2.5% quarter on quarter. Personnel expenses increased by 4% quarter on quarter.
Speaker #3: However , on a rolling 12 month basis , we continue to see a deceleration in the growth rates each quarter . Third profit for the period amounted to 251.9 million .
Speaker #3: And as the fourth highlights , our earnings per share after dilution amounted to €1.26 . Let's move on to the next slide , where I show you the development of our cash flow First , on the left hand side , we show our operating cash flow after investments .
Speaker #3: This amounted to €311 million for the quarter, representing a solid improvement compared with Q4, partly driven by a recovery in working capital.
Speaker #3: The last 12 months . Cash conversion remains strong and stays around the long term trend , with 81% in the quarter . Turning to the chart on the right , which shows our capital expenditures , total CapEx related to tangible and intangible assets amounted to 34.6 million for the quarter .
Joakim Andersson: Turning to the chart on the right, which shows our capital expenditures. Total CapEx related to tangible and intangible assets amounted to EUR 34.6 million for the quarter. This remains stable as a share of net revenues, as illustrated by the black line. Next slide, please. Turning to our financial position. As you can see on this slide, there are no major changes compared to recent quarters. We continue to be in a very strong position with total cash of EUR 1.2 billion, including our bond portfolio, and total equity of EUR 4.3 billion. With that, I'll conclude my remarks for this quarter, and overall, it was a fairly uneventful quarter from a financial standpoint. I'll now hand it back to you, Martin, to wrap things up.
Speaker #3: This remains stable as a share of net revenues, as illustrated by the black line. Next slide, please. Turning to our financial position.
Speaker #3: And as you can see on this slide , there are no major changes compared to recent quarters . We continue to be in a very strong position with total cash of €1.2 billion , including our bond portfolio and total equity of €4.3 billion , with that , I'll conclude my remarks for this quarter .
Speaker #3: And overall , it was a fairly uneventful quarter from a financial standpoint . I'll now hand it back to you , Martin , to wrap things up .
Martin Carlesund: Thank you very much. Let's summarize and then move to the Q&A. If we look beyond Europe, 2026 has started really good. We grow across all regions, we maintain the margin, and we have started to deliver on the amazing product roadmap. I'm a little bit frustrated that the majority of our showcase games will be launched during H2 of the year, but they will be worth the wait. Europe is the main headache right now, but the long-term positive view is intact. I've talked about it many times before. Regulation changes over time, and right now the balance is not where it should be. As channelization continues to decrease, regulators will eventually have to adapt to protect the players, and not by force, but by sound regulation, get them back into the regulated part of the market.
Speaker #3: Thank you very much. So, let's summarize and then move to the Q&A. If we look beyond Europe, 2026 has started really good.
Speaker #3: We grow across all regions. We maintain the margin, and we have started to deliver on the amazing product roadmap. I'm a little bit frustrated that the majority of our showcase games will be launched during the second half of the year, but they will be worth the wait.
Speaker #3: Europe is the main headache right now , but the long term positive view is intact . I've talked about it many times before , regulation changes over time and right now the balance is not where it should be , but as channelization continues to decrease , regulators will eventually have to adopt , adapt to protect the players and not by force , but by sound regulation .
Speaker #3: Get them back into the regulated part of the market . We're doing what we can to mitigate the current development , working smarter and harder , releasing the best games , pulling the players back .
Martin Carlesund: We're doing what we can to mitigate the current development, working smarter and harder, releasing the best games, pulling the players back. As highlighted, we will continue to invest mostly in US and Latin, alongside our internal focus on product innovation. Some further expansion in Europe will also be needed, but we are naturally more cautious in the short term. I don't want to use litigation against a competitor to take focus from the results, but when a competitor sets aside all rules and deliberately try to hurt us, we must take action to protect our shareholder value. They have stated that they stand behind the defamatory report, but please remember that they paid enormous amounts of money during four years to not be exposed as the commissioner of that said report.
Speaker #3: As highlighted, we will continue to invest mostly in the USA and LATAM, alongside our eternal focus on product innovation. Some further expansion in Europe will also be needed, but we are naturally more cautious in the short term.
Speaker #3: I don't want the US litigation competitor to take focus from the results, but when a competitor sets aside all rules and deliberately tries to hurt us, we must take action to protect our shareholder value.
Speaker #3: They have stated that the stand behind the defamatory report , but please remember that they paid enormous amounts of money during four years to not be exposed .
Speaker #3: As the Commissioner of that SAT report. This. Also, remember that the report was based on a success fee structure, with the report producer being paid based on how severely they could hurt our shareholder value.
Martin Carlesund: Please also remember that the report was based on a success fee structure where the report producer was being paid based on how severely they could hurt our shareholder value. Evolution worked hard. We are methodic, we are patient, and we are very disciplined. We believe in right and have strong and good culture based on morale and solid ethics. As a last note in the quarter, the board has proposed that no dividend will be distributed for 2025, as it has assessed that the cash dividend currently is not the best way to create long-term shareholder value. The board has not made further decisions on the capital allocation for 2026 yet. It's not dramatic, rather refreshing. When further decisions are made, we will let you know about it. With that, we thank you for listening so far, and now we open up for questions.
Speaker #3: Evolution works hard . We are methodical . We're patient , and we are very disciplined . We believe in right and have strong and good culture based on morale and solid ethics And as the last note in the quarter , the board has proposed that no dividend will be distributed for 2025 as it has assessed that the cash dividend currently is not the best way to create long term shareholder value .
Speaker #3: The board has not made further decisions on the capital allocation for 2026 yet . It's not dramatic . Rather refreshing when further decisions are made , we will let you know about it .
Speaker #3: So with that , we thank you for listening so far . And now we open up for questions
Operator 2: The next question comes from Praveen Choudhary from Morgan Stanley. Please go ahead.
Speaker #2: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key on your telephone keypad. The next question comes from Praveen Gondal from Barclays.
Speaker #2: Please go ahead .
Praveen Choudhary: Hello, good morning. Thanks for taking my question.
Speaker #4: Hello . Good morning . Thanks for taking my questions . Firstly , on capital allocation , I appreciate that board of directors have not decided to propose any dividends .
Martin Carlesund: Good morning.
Praveen Choudhary: Firstly, on capital allocation, I appreciate that board of directors have not decided to propose any dividends. Could you explain what are the reasons behind those decisions and when can we expect any further communication in this regard? Secondly, on Europe, what are the key countries in Europe where you flag that channelization is decreasing at faster pace? Has that materially accelerated in Q1? When do you expect that to stabilize? Thank you.
Speaker #4: Could you explain what are the reasons behind those decisions, and when can we expect any further communication in this regard? And secondly, on Europe, what are the key countries in Europe where you flagged that channelization is decreasing?
Speaker #4: Are at faster pace , has that materially accelerated , accelerated in Q1 ? And when do you expect that to stabilise ? Thank you .
Martin Carlesund: On the capital allocation, the board is responsible for that, and they will take a decision that is creating the most shareholder value, and they are thoroughly taking this question seriously, and looking at it. As a result, they cancel the dividend for 2026. As soon as they have made their analysis, taking the decisions, they will get back and we will communicate what to do with our excess cash. I cannot, at the moment, give any more clarification on that. When it comes to channelization in Europe, and if we split this in two, the channelization in Europe in a number of countries are not really known. The ones that make some of the investigations and estimations of that could be UK. They have a low channelization. It's dropped significantly over the years. Netherlands, the same, but there are also others, such as maybe even Sweden.
Speaker #3: On the capital allocation , the board is responsible for that and they will take a decision that is creating the most shareholder value , and they are thoroughly and taking this questions serious and looking at it .
Speaker #3: And as a result, they cancelled the dividend for 2026. As soon as they have made their analysis and taken the decisions, they will get back and we will communicate what to do with our excess cash.
Speaker #3: I cannot at the moment give any more clarification than that when it comes to channelization in Europe, and if we split this in two, the generalization in Europe in a number of countries is not really known.
Speaker #3: The ones that make some of the investigations and estimations of that could be the UK. They have a low channelization. It's dropped significantly over the years.
Speaker #3: Netherlands the same , but there are also others such as maybe even Sweden . It's quite hard to get those figures in total as the market , the unregulated market is growing and not clear .
Martin Carlesund: It's quite hard to get those figures in total, as the unregulated market is growing and are not clear. That's the comment on that. There are also other countries taking other regulatory measures or governmental measures that affect the situation in Europe as well. That's the background or backdrop to Europe.
Speaker #3: So that's the comment on that. There are also other countries taking other regulatory measures or governmental measures that affect the situation in Europe as well.
Speaker #3: So that's the background or backdrop to Europe.
Praveen Choudhary: Thank you. If I sort of follow up on that, could you just elaborate on what is the subjectivity part of the impact, which is impacting the player activity, in Europe and in which countries?
Speaker #4: Thank you . And if I sort of follow up on that , could you just elaborate on on what are what is the subjectivity apart of the impact , which is impacting the player activity in Europe and in which countries
Martin Carlesund: I will briefly comment on it, but I think that the regulation in many countries stays the same. The subjective evaluation or the implementation of the regulations have changed. Even though the regulatory framework stays the same, suddenly it's applied in a different way. That's what I mean with subjectivity.
Speaker #3: I think that I will—I will briefly comment on it, but I think that the regulation in many countries stays the same.
Speaker #3: But the subjective evaluation or the implementation of the regulations have changed . So . So even though the regulatory framework stays the same , suddenly it's applied in a different way .
Speaker #3: That's what I mean with the subjectivity.
Praveen Choudhary: Thank you very much. This is really helpful.
Speaker #4: Thank you very much. This is really helpful.
Operator 2: The next question comes from Georg Attling from Pareto Securities. Please go ahead.
Speaker #2: The next question comes from Georg Etling from Pareto Securities. Please go ahead.
Georg Attling: Good morning, Martin, and you, Joakim. I have a couple of questions starting with Asia. Another quarter of sequential growth, and also when I look at the player data here in April, it looks very strong for Asia. I'm just wondering what makes you reluctant to calling the trend shift here in Asia for the rest of the year.
Speaker #5: Good morning . Martin , and you are Kim . I have a couple of questions , starting with Asia . So not the quarter of sequential growth .
Speaker #5: And also, when I look at the player data here in April, it looks very strong for— for Budget. So I'm just wondering what makes you reluctant to call in the trend shift here in Asia for the rest of the year.
Martin Carlesund: I think that we need to be cautious. We need to be also prepared for that. It's a little bit of a cat and mouse game, and we methodically, systematically work on the situation, as you can see, and we're very happy with the two quarters in a row where we grow. We're just a little bit cautious in our communication.
Speaker #3: I think that we need to be cautious. We need to be also prepared for that. As I write in the—it's a little bit of a cat and mouse game, and...
Speaker #3: And we . Methodically , systematically work on the situation . As you can see , and we're very happy with the two quarters in a row where we grow .
Speaker #3: But we are just a little bit cautious in our communication.
Georg Attling: Yeah. Okay. On Europe, another question. You alluded to it earlier, but just wondering, is this a broad-based decline across most countries or focused on a few countries with large declines?
Speaker #5: Yeah . Okay . On Europe , another , another question You alluded to it earlier , but just wondering , is this a broad based decline across most countries or focused on a few countries with large declines ?
Martin Carlesund: I think you would say that it's a little bit of both. There are war, oil price situation in the world, and it affects, I think, Europe quite a lot. You can also see that it affects the dollar, another. There are specific countries taking measures, and it's a little bit of a mix.
Speaker #3: I think you would say that it's a little bit of both. I mean, there is a war oil price situation in the world, and it affects, I think, Europe quite a lot.
Speaker #3: You can also see that it affects the dollar. Another— and there are specific countries taking measures, and it's a little bit of a mix.
Georg Attling: Okay. Just to follow up on that, what do you view is really in your hands when it comes to Europe? Because there's only so much you can do with the channelization, and I assume you're quite keen to stop this negative trend in the region.
Speaker #5: Okay. And just to follow up on that, what do you view is really in your hands when it comes to Europe?
Speaker #5: Because there's only so much you can do with the channelization. And I assume you're quite keen to stop this negative trend in the region.
Speaker #3: Okay . And user satisfaction , desire to play evolution games strengthen and higher entertainment value . That's the key for us . We we are even looking at it like if we do even better games , higher entertainment , we will pull players back into the regulated environment .
Martin Carlesund: End-user satisfaction, desire to play Evolution games, strengthen on higher entertainment value. That's the key for us. We are even looking at it like if we do even better games, higher entertainment, we will pull players back into the regulated environment, even though the hurdle has been created, which make them go away. Our core focus, as always, see to that we deliver the best games that the players desire, position them with the operator or the future operator, see to that we always are on top. That's the only thing that will matter in the long run.
Speaker #3: Even though the hurdle has been created , which makes them go away . So , so , so our core focus , as always , see so that we deliver the best games that the players desire , position them with the operator or the future operator .
Speaker #3: See, so that we always are on top. That's the only thing that will matter in the long run.
Georg Attling: That's clear. Just a final question on Latin, where growth is accelerating quite nicely. Just wondering what you view as the drivers to this acceleration. Is it market growth, studio expansion, larger game portfolio, or something else?
Speaker #5: That's that's clear . Just a final question on Latam . Where growth is accelerating quite nicely . Just wondering what the what you view as the drivers to this acceleration ?
Speaker #5: Is it the market growth, city expansion, logic game portfolio, or something else?
Martin Carlesund: Great games, again, end-user desire to play our games, studio expansion, market growth situation, and so on. It's a good environment to be in, but if we didn't have the games to supply to the market, we would be nothing. It's a combination.
Speaker #3: Great games again , end user desire to play our games . Studio expansion , market growth situation and so on . It's a , it's a good environment to be in .
Speaker #3: But if we didn't have the games to supply to the market, we would be nothing. So it's a combination.
Georg Attling: Okay. Thank you. I'll jump back in the queue. Thanks.
Speaker #5: Okay, thank you. I'll jump back in the queue. Thanks.
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Nikola Kalanoski from ABG Sundal Collier. Please go ahead.
Speaker #2: The next question comes from Nikola Kalinowski from ABG Sundal Collier. Please go ahead.
Nikola Kalanoski: All right. Hi, gentlemen, and thank you for taking my questions.
Speaker #6: Hi gentlemen , and thank you for taking my questions . I'm a bit curious on on game shows . So from an outside in perspective , game shows seem to be growing quite nicely with respect to player count and category seems to be becoming a larger and larger share of the player count .
Martin Carlesund: Welcome.
Nikola Kalanoski: I'm a bit curious on game shows. From an outside-in perspective, game shows seem to be growing quite nicely with respect to player count, and the category seems to be becoming a larger and larger share of the player count. Are you generally seeing a less volatile revenue profile from game shows compared to some of the other game categories?
Speaker #6: Are you generally seeing less—less volatile revenue profile from game shows compared to some of the other game categories?
Martin Carlesund: No.
Speaker #3: No
Nikola Kalanoski: Short and sweet. Thanks. A short question on Ice Fishing. Are there any regions in which this game is particularly popular, or would you say it's equally popular all over the world?
Speaker #6: Short and sweet . Thanks . And . And then a short question on on ice fishing . Are there any regions in which this game is particularly popular , or would you say it's equally popular all over the world
Martin Carlesund: Ice Fishing is a super success, a great game, gaining traction all over the world. Actually a loved game, one of the best we've made.
Speaker #3: Ice fishing is a super success , a great game , gaining traction all over the world . Actually , a loved game . One of the best .
Speaker #3: We made .
Nikola Kalanoski: All right. Thanks a lot.
Speaker #6: All right. Thanks a lot.
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Ben Shelley from UBS. Please go ahead.
Speaker #2: The next question comes from Ben Shelly from UBS. Please go ahead.
Ben Shelley: Hi. Good morning.
Speaker #7: Hi . Good morning . Good . I've I've got three questions . Question one do you think margins can remain stable year on year given Europe and Asia are still declining .
Martin Carlesund: Morning.
Ben Shelley: I've got three questions. Question one, do you think margins can remain stable year on year, given Europe and Asia are still declining and you are expanding capacity in Latin America?
Speaker #7: And you are expanding capacity in Latin America.
Martin Carlesund: I think that the incremental margin and the scalability of our business model is for sure proven this quarter. I think that in spite of the situation in Europe, we deliver good cash flow, fantastic margin, and it shows that the investments that we do are really, really well placed. My view is yes.
Speaker #3: I think that the incremental margin and the scalability of our business model is for sure proven this quarter. I think that, in spite of the situation in Europe, we deliver a good cash flow.
Speaker #3: Fantastic margin , and it shows that the investments that we do are really , really well placed . So my view is , yes .
Ben Shelley: Okay. Given channelization issues in Europe, how do you see the outlook for the UK amid material iGaming tax hikes? Is there anything interesting you are seeing from operators in the market already?
Speaker #7: Okay . And given channelization issues in Europe , how do you see the outlook for the UK amid material ? I gaming tax hikes ?
Speaker #7: And is there anything interesting you are seeing from operators in the market already?
Martin Carlesund: I think that I will answer it in general terms. Everyone in the online gaming sector, in one way or the other, if you're an operator, supplier, or even if it's something else, you would know that if you have a tax level that is somewhere around 25, 20, but even 15 is great, and 20 works, and 25. As soon as you hit the 30 bracket, it starts to be really difficult, and you open up for lowering channelization and unregulated play. When you put taxes on 40% level and a lot of other hurdles, you make it so difficult and not nice for the player experience that players in quite large amounts seeks gameplay outside. I think that will slowly come into play.
Speaker #3: I think that I will answer it in general terms . Everyone in in the online gaming sector , in one way or the other , if you're an operator or supplier or even if it's something else , you would know that if you have a tax level that is like somewhere around 25 , 20 .
Speaker #3: But even 15 is great . And 20 works and 25 . But as soon as you hit like the 30 bracket , it starts to be really difficult and you open up for , for , for lowering channelization and , and , and unregulated play .
Speaker #3: When you put taxes on 40% level and , and a lot of other hurdles , you make it so difficult and , and not nice for the player experience that players in , in quite large amounts seeks play game play outside .
Speaker #3: I think that will slowly come into play right now. Regulators talk only about what they do as repressive measures, but they don't talk about what happens to the players that are outside the regulated remit.
Martin Carlesund: Right now, regulators talk only about what they do as repressive measures, but they don't talk about what happens to the players that are outside the regulated remit. I think that needs to come into focus, and you need to find that balance. I look forward to see that balance coming back.
Speaker #3: And I think that that needs to come into focus, and you need to find that balance. I look forward to seeing that balance coming back.
Ben Shelley: Okay, thank you. Just lastly, on competitive intensity in the live casino industry, are you experiencing any pricing pressures, any loss of share?
Speaker #7: Okay . Thank you . And then just lastly on competitive intensity in the live casino industry , are you experiencing any price pressures , any loss of share ?
Martin Carlesund: We experience that all along. I've been in the company for quite a long time. I think that the only difference is that there are different names related to the competitors. Some, during one period it's one name, and the second period it's another name and so on. The pricing pressure from competition, not able to cover the gaps that we increase all along with the innovation and the game shows we do, is always constant. It's always there.
Speaker #3: We are experienced in that all along. I mean, I—I’ve been in the company for quite a long time. I think that the only difference is that there are different names related to the competitors.
Speaker #3: Some some during one one period . It's one name and the second period it's another name , and so on . The pricing pressure from competition , not able to to to cover the gaps that we increase all along with the innovation and the game shows we do is always compact .
Speaker #3: It's always there .
Ben Shelley: Thanks very much.
Speaker #7: Thanks very much .
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Martin Arnell from DNB Carnegie. Please go ahead.
Speaker #2: The next question comes from Martin Arnal from DMB Carnegie. Please go ahead.
Martin Arnell: Hi, guys. My first question is on Europe and this discussion, what's in your own hands and what you can do to improve. How important do you think the new game releases will be for Europe in order to come back to growth?
Speaker #8: Hi , guys . My first question is on Europe . And this discussion . What's in your own hands and what you can do to improve how important do you think the new game releases will be for for Europe in order to come back to growth ?
Martin Carlesund: I have a positive view on Europe going forward, and I think the game releases that we are going to do and also even the games that we already have will have an impact and is super important. I think that some of the games that we do are the creator of gameplay and entertainment and people, persons, and end users search those games. The more of those games that we have, the more pull into the regulated environment we will have.
Speaker #3: I have a positive view on Europe going forward, and I think that game releases that we are going to do—and also even the games that we already have—will have an impact and are super important.
Speaker #3: I think that some of the games that we do are , are , are the creator of gameplay and entertainment and people , people , persons and end users .
Speaker #3: Search those games . So the more of those games that we add , the more pull into the regulated environment we will have .
Martin Arnell: Yeah. Many of them are tilted to H2, but you have a few. Is it correct that you have two new MONOPOLY games scheduled for Q2?
Speaker #8: Yeah . And many of them are tilted to second half , but you have a few , if correct , if you have two new monopoly games scheduled for Q2 , correct ?
Martin Carlesund: Correct. Yes, that's correct.
Martin Arnell: Yeah.
Speaker #3: Yes . That's correct .
Martin Carlesund: The major one-
Speaker #8: Yeah .
Martin Arnell: I'm sorry.
Speaker #3: But the major ones are in the second half . And that's I , I already said it's a little bit frustrating for me , but it takes time .
Martin Carlesund: is the H2. That, I already said it's a little bit frustrating for me, but it takes time. The big game, Game Night, it's a huge game. Hundreds and hundreds of square meters of game show and different environments, studios. You go in and you follow the player in those, and it takes time to build. It's a really complex world that we are creating.
Speaker #3: The big game, game night, it's a huge game. Hundreds and hundreds of square meters of game show and different environments.
Speaker #3: Studios . You go in and you follow the player in those and it takes time to build . It's not a it's it's , it's a really , really complex world that we are creating .
Martin Arnell: Interesting to look forward to that. Just also a question on orders from your clients on new dedicated tables. Has that changed anything dramatically, or is it stable, or how do you view it?
Speaker #8: Interesting to , to look forward to that . And on the just also a question on like orders from your clients on new dedicated tables , has that changed anything dramatically ?
Speaker #8: Or is it stable, or how do you view it?
Martin Carlesund: We don't guide on that. I would say that we are continuously doing well.
Speaker #3: We don't guide on that. I would say that we are continuously doing well.
Martin Arnell: Okay. On dedicated tables orders. Okay. Final question would be on this game show discussion, the product mix. When it comes to game shows, are the new game shows more lucrative for you than the old ones in terms of player activity, bet size, et cetera?
Speaker #8: Okay . On , on , on or dedicated tables orders . Okay . And and final question would be on on this game show discussion .
Speaker #8: The product mix when it comes to game shows are , are the new game shows more lucrative for you than the old ones in terms of like payer activity , batch size , etc.
Martin Carlesund: I'm sorry. I don't guide on profitability per game or new game or old games. I think that the type of games that we do now with the type of Monopoly and Hasbro content is of course highly valuable for everyone, us, the operator, and the player.
Speaker #3: I don't I , I'm sorry , I don't guide on profitability per game or new game or old games . I think that the type of games that we do now with the type of monopoly and Haskell content is of course , highly valuable for everyone , us and the operator and the player
Martin Arnell: Okay. Thank you, guys. That's all for me.
Speaker #8: Okay. Thank you, guys. That's all from me.
Martin Carlesund: Thank you very much. Thanks.
Speaker #3: Thank you very much. Thank you.
Operator 2: The next question comes from Ed Young from Morgan Stanley. Please go ahead.
Speaker #2: The next question comes from Ed Young from Morgan Stanley . Please go ahead
Ed Young: Good morning.
Speaker #9: Good morning . My my first question on on Europe , please . You've talked through the channelization angle and the subjectivity part of it , but if I look at your disclosure , the regulated mix is up despite the European decline and some Asia growth .
Martin Carlesund: Morning.
Ed Young: My first question on Europe, please. You've talked through the channelization angle and the subjectivity part of it. If I look at your disclosure, the regulated mix is up despite the European decline and some Asia growth. Is it fair to say that this is primarily a decline in your European jurisdictions that are not locally regulated in the quarter rather than the channelization issue, which has obviously been ongoing? The second question-
Speaker #9: So is it fair to say that this is primarily a decline in your European jurisdictions that are not locally regulated in the quarter , rather than the channelization issue , which is obviously been been been ongoing ?
Speaker #9: The second question .
Martin Carlesund: Okay, we'll just take one question at a time.
Speaker #3: Let's take one . Sorry . Sure . Otherwise , otherwise I will , due to my lack of memory , probably not . Answer .
Ed Young: Sorry. Sure.
Martin Carlesund: Otherwise, I will, due to my lack of memory, probably not answer. You have to look at, we're growing nicely. Everything more or less in Latin is regulated. We're growing nicely in US, adding money there as well. Adding a little bit of money in Asia. There is a percentage point here and there, and there are decimals to that. I wouldn't necessarily draw that conclusion to it. It's a point. There are other regions in Europe that are not regulated, that are suffering, and there are regulated jurisdictions in Europe that are suffering.
Speaker #3: You have to look at we're growing nicely . Everything more or less in Latin is regulated . We're growing nicely in us adding money there as well , adding a little bit of money in Asia , there is a percentage point here and there , and there are decimals to that .
Speaker #3: So I wouldn't I wouldn't necessarily draw that conclusion to its Point there . Are there are other regulations in Europe that are not regulated , that are suffering .
Speaker #3: And there are regulated jurisdictions in Europe that are suffering.
Ed Young: Okay. Second, you obviously added Playtech to your legal complaint. Can you just maybe give your reflection on where you are now in terms of what you're aiming for through the legal process, and on what timeline we should expect to get an idea of damages, including punitive damages that you're seeking?
Speaker #9: Okay . Second , you obviously added Playtech to your legal complaint . Could you just maybe , maybe give your reflection on where you are now in terms of what your aiming for through the legal process and on what timeline we should expect to get an idea of damages , including punitive damages that you're seeking
Martin Carlesund: We have had an opponent in this legal debacle that has been ongoing for four years, and we have systematically been progressing and winning in court. That's taken four years. It will take a very long time, and the opponent that we have is also taking a lot of measures to delay everything which we have seen in the past, and we expect that in the future as well. Think about years, probably many years.
Speaker #3: We've had an opponent in this legal debacle that has been ongoing for four years, and we have systematically been progressing and winning in court.
Speaker #3: That's taken four years. It will take a very long time. And the opponent that we have is also taking a lot of measures to delay everything, which we have seen in the past.
Speaker #3: And we expect that in the future as well . So I think about years , probably many years .
Ed Young: Okay. Finally, there's been some confusion in some of the questions we've had this morning, so perhaps you could help clear this up. In terms of the Argentina studio acquisition, just to be clear, you've acquired the studio, i.e., the building of a competitor that's departed, or have you acquired a competitor in some of their revenues in Argentina that have contributed to the quarter?
Speaker #9: Okay . And then finally , there's been some confusion in some of the questions we've heard this morning . So perhaps you could help clear this up in terms of the Argentina studio acquisition , just to be clear , you've acquired the studio , i.e. the building of a competitor that's departed .
Speaker #9: Or have you acquired a competitor in some of their revenues in Argentina that have contributed to the quarter?
Martin Carlesund: Studio.
Speaker #3: Studio ?
Ed Young: Great. Thank you.
Speaker #9: Great . Thank you .
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Karan Puri from J.P. Morgan. Please go ahead.
Speaker #2: The next question comes from Karan Puri from JP Morgan. Please go ahead.
Karan Puri: Hi. Thank you for taking my questions. Most of them have already been.
Speaker #10: Hi. Thank you for taking my questions. Most of them have.
Speaker #3: Already
Martin Carlesund: Good morning.
Karan Puri: Good morning. Most of them have already been answered, but just quickly on the Argentina point, just want to clarify, is there any inorganic revenue contribution coming from that acquisition for LATAM or not?
Speaker #10: Been . Good morning . Most of them have already been answered , but just quickly on the Argentina point , I just want to clarify , is there any inorganic revenue contribution coming from that acquisition for Latam or or not ?
Martin Carlesund: No.
Karan Puri: Okay.
Speaker #10: No . That's okay .
Martin Carlesund: No.
Speaker #3: No .
Karan Puri: Got it. The second question, I actually just wanted to check on the UKGC. Any further discussions with the regulator on this front? Any idea when this might be resolved?
Speaker #10: That's got it . And the second question , I actually just wanted to check on the UK , GC . Any further discussions with the regulator on this front ?
Speaker #10: Any idea when this might be resolved
Martin Carlesund: I have no idea when it will be resolved. No progress to report.
Speaker #3: I have no idea when it will be resolved. Nothing. Nothing. No progress to report.
Karan Puri: Okay. Just one quick one, if I can squeeze that one in. One on the RNG performance. It seemed like it came in much stronger than anticipated, at least on a year-over-year basis. Maybe can you provide some incremental color on this, please?
Speaker #10: Okay , just one quick one . If I can squeeze that 1 in 1 on the RNG performance , it seemed like it came in much stronger than anticipated .
Speaker #10: At least at least on a year over year basis . Maybe . Can you provide some incremental color on this , please
Martin Carlesund: I think we're doing great in RNG right now. Fantastic gains from NoLimit. We're gaining traction. We are on our way. We systematically, methodically work with it, and I think that we're doing better and better.
Speaker #3: I think we're doing great in RNG right now . Fantastic gains from no limit . We're gaining traction . We are on our way with systematically , methodically work with it .
Speaker #3: And I think that we're doing better and better.
Karan Puri: Okay. Thank you so much.
Speaker #10: Thank you so much .
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Andrew Tam, from Rothschild & Co Redburn. Please go ahead.
Speaker #2: The next question comes from Andrew Tam from Rothschild & Co Redburn. Please go ahead.
Andrew Tam: Good morning. Just one for me.
Speaker #11: Good morning . Just one for me . Good morning . We've just heard from some of the operators out there about some of the headwinds in terms of the Turkish market , to what extent .
Martin Carlesund: Morning.
Andrew Tam: Good morning. We've just heard from some of the operators out there about some of the headwinds in terms of the Turkish market. To what extent, just curious, did Turkish weakness contribute to the weak European result?
Speaker #11: Just curious, did Turkish weakness contribute to the weak European result?
Martin Carlesund: I won't quantify market specifics in Europe, but that also contributes to the decline in Europe, yes.
Speaker #3: I want quantify market specifics in Europe , but that also contributes to the decline in Europe . Yes .
Andrew Tam: All right, thanks.
Speaker #12: I
Speaker #11: Got it . Thanks .
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: The next question comes from Rasmus Engberg from Kepler Cheuvreux. Please go ahead.
Speaker #2: The next question comes from Rasmus Engberg from Kepler cheuvreux . Please go ahead .
Rasmus Engberg: Hi. Good morning.
Speaker #13: Hi . Good morning .
Martin Carlesund: Morning. Good morning.
Speaker #3: Good morning . Good morning . I took a sip of coffee . That's why I was a bit slow
Rasmus Engberg: Quick-
Martin Carlesund: I took a sleep coffee, that's why I was a bit slow.
Rasmus Engberg: In the Americas, both North and LATAM, which business is growing faster? Is it RNG or is it live?
Speaker #13: In the Americas , both . Both North and south and Latam , which which business is growing faster ? Is it is it RNG or is it live ?
Martin Carlesund: Live is growing faster.
Speaker #3: Live is growing faster
Rasmus Engberg: In both?
Speaker #13: In both
Martin Carlesund: In LATAM in total. I don't want to go down to.
Speaker #3: In Latam in total, I don't want to go down to specific markets, but we're doing a little bit better and better on R&D in total.
Rasmus Engberg: Okay
Martin Carlesund: ... specific market. We're doing a little bit better and better on RNG in total. Live is the main show.
Speaker #3: And , and it's yeah , but live is , is the main show .
Rasmus Engberg: Okay. Second question, your rate of expansion with new studios this year compared to last year, is it higher or lower or roughly the same?
Speaker #13: Okay . And second question , your rate of expansion with new studios this year compared to last year , is it , is it higher or lower or roughly the same
Martin Carlesund: Good question. The decisions we will take during 2026 will be a little bit more forward-leaning, and expansion will be maybe in actual terms, about the same. We are doing more for 2026, 2027, 2028, this year than we actually did 2025. I look forward to that.
Speaker #3: Good question The decisions we will take during 2026 will be a little bit more forward leaning and expansion will be maybe in actual terms about the same .
Speaker #3: But but , but we are doing more for 2026 , 2027 , 2028 . This year than we actually did . And I look forward to that .
Rasmus Engberg: I don't know if you can answer this, but is Evolution going to have a board meeting after the AGM? Or in conjunction with the AGM?
Speaker #13: And I don't know if you can answer this, but are you—is Evolution going to have a board meeting after the AGM, or in conjunction with the AGM?
Martin Carlesund: I actually don't want to answer that to avoid any speculation. There is a constituent board meeting in connection with the AGM. That's correct, yes.
Speaker #3: I actually don't want to answer that to avoid any speculation. There is a constituent board meeting in connection with the AGM.
Speaker #3: That's correct . Yes .
Rasmus Engberg: Thank you.
Speaker #13: Thank you .
Martin Carlesund: Thank you. Interesting question.
Speaker #3: Thank you. Interesting question.
Operator 2: The next question comes from Ben Shelley from UBS. Please go ahead.
Speaker #2: The next question comes from Ben Shelly from UBS . Please go ahead .
Ben Shelley: Sorry. Thanks for squeezing me in again. I just wanted to ask on accounts receivables, and compared to your quarterly revenues, they remain elevated year on year and broadly stable quarter on quarter. Are there any updates on your Q4 comments here?
Speaker #7: Sorry . Thanks for squeezing me in again . I just wanted to ask on accounts and , you know , compared to your quarterly revenues , there elevated year on year and broadly stable quarter on quarter , are there any comments or any updates on your Q4 comments here ?
Joakim Andersson: Yeah, I can pick that up. Hi. No, you said any updates from Q4? Yes, Q4 was most definitely on an elevated basis, and we are constantly looking into it, constantly reminding customers, constantly chasing overdues. When we review, there's nothing alarming in there. We are now more methodical, whatever that word is, thoroughly doing this work and with a higher discipline than before. We saw a roughly EUR 10 million reduction during this quarter, and I expect that to continue down.
Speaker #3: Yeah , I can pick that up . I know , I mean , yeah , you said any any updates from from Q4 ?
Speaker #3: Yes , Q4 was was definitely on an elevated basis . And we are constantly looking into it , constantly reminding customers constantly chasing Overdues when we review , that's nothing alarming in there .
Speaker #3: So we are now kind of more , more methodology , methodology . Or whatever that word is thoroughly doing this work . And with the higher discipline than before .
Speaker #3: So we saw a roughly 10 million reduction during this quarter . And I expect that continue down .
Ben Shelley: Thanks very much.
Speaker #7: Thanks very much .
Joakim Andersson: Thanks.
Martin Carlesund: Thank you.
Speaker #3: Thanks . Thank you
Operator 2: The next question comes from Jamie Baise from Citi. Please go ahead.
Speaker #2: The next question comes from Jamie Base from Citi . Please go ahead .
Jamie Baise: Good morning, guys. Just the one question from me, or two parts to one question, I guess. Firstly, are you feeling relatively confident that a solution will be found for Galaxy Gaming before the deadline? And if not, is the deadline you've got now, is that a hard deadline or can that be extended again?
Speaker #14: Good morning guys . Just the one question from me or two parts to one question I guess . So firstly , are you feeling relatively confident that a solution will be found for Galaxy gaming before the deadline ?
Speaker #14: And if not , is the deadline you've got now ? Is that a hard deadline or can that be extended again
Martin Carlesund: I don't want to guide on it. Of course, we are working hard to solve everything outstanding, and it's progressing. Right now the deadline is hard. That comes down to, is there any possibility with them to postpone it? Right now the deadline is hard.
Speaker #15: I .
Speaker #3: Can't , I don't want to guide on it . Of course , we are working hard to solve everything outstanding and progressing And the right now the deadline is hard .
Speaker #3: So then, then that comes down to, is there any possibility with some to, to, to postpone it? Right now the deadline is hard.
Jamie Baise: Very clear. Thank you.
Speaker #14: Very clear. Thank you.
Martin Carlesund: Thank you.
Speaker #3: Thank you
Operator 2: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Speaker #2: There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.
Martin Carlesund: Thank you very much for participating, listening to us here today, and looking forward to see you in a quarter again. Thank you. Bye-bye.
Speaker #3: Thank you very much for participating, listening to us here today, and looking forward to seeing you in a quarter again. Thank you.
Speaker #3: Bye bye
Operator 2: The host has ended this call. Goodbye.
