“Someone is stealing our products,” Evolution CEO Martin Carlesund told analysts during an earnings call for the group’s 2024 full-year results on 30 January.
Carlesund said that its development in Asia was flat in Q4 2024, versus the previous quarter, as it continues to “face challenges” from cyberattacks targeting its video distribution in the region.
When asked by an analyst who Evolution thought was behind the cyberattacks targeting the company, Carlesund noted that it was unclear and could remain so.
“It would be very speculative for me to answer that, I simply do not know exactly who. If I would know, it would be easier. You can look at it like someone having a movie downloaded on Pirate Bay or Netflix. It’s the same. You don’t know,” Carlesund responded.
The live casino giant’s CEO said he doesn’t have a good answer for why the Asia is the predominant location of the cyberattacks stealing their IP. However, he stated that the “technical barriers” that the group was implementing to address the issues will be “valid all over the network”.
In its fourth quarter, Asia net revenue was €201.2 million, no change over the previous quarter but up 10.7% year-on-year from €181.7 million.
IP Blocking and changing landscapes
Carlesund told analysts that the group is seeing a “change of landscape” in both the European and Asian markets as regulators flex IP blocking powers.
“We want high channelisation. We’re completely aligned with all the regulators, wherever they are. We want it to be 100% whether it’s local licences and so on. And historically there hasn’t been blocking of internet from a regulator. Whatever regulation there is, internet has been open. And now regulators are pushing a little bit to block internet,” Carlesund said.
“We’re working with all regulators in Europe constantly and I think that there is a move to want to restrict the internet in one way or the other.”
In December, the UK’s Gambling Commission launched a review of the operator’s licence. The Commission found that Evolution’s games were being provided to websites that did not hold a local gambling licence.
Evolution told investors last month that the UK review could have a “range of outcomes”, including a revocation of its UK licence. The group also stated that its revenue from the UK market was “about” 3%.
In a statement published in December, Evolution CEO Martin Carlesund said the company is “committed to supporting the licensed UK market, as well as preventing unlicensed traffic. “We are now taking forceful action using all technical tools available to us to ensure that our games are only available in the UK through Commission-licensed operators.”
Full-year results
In its full-year results posted yesterday (30 January), Evolution reported total operating revenue of €2.21 billion for the year ended 31 December 2024, up by 23.1% year on year. Net profit for the year was up 16.2% to €1.24 billion.
Evolution’s full-year results for 2024 marked CFO Jacob Kaplan’s last reporting in the role. After nine years as CFO, Kaplan is being replaced by Joakim Andersson with effect 18 February.
Original article: https://igamingbusiness.com/finance/full-year-results/evolution-ceo-flags-persistent-cyberattack-and-ip-blocking-challenges/
