Analyst Labels Evolution RNG Performance as Embarrassing

An analyst from Regulus Partners shocked the iGaming industry with a big criticism towards major software provider Evolution Gaming. The analyst stated that the RNG performance from Evolution is embarrassing. 

The Reason Behind This Big Criticism

The take by Regulus Partners comes after the software provider announced that its revenue growth pushed its net profit over €1 billion. The company attributes this growth all across its RNG and live sectors.

Evolution’s revenue coming from the live casino content went up 28.1% to €1.52 billion. This result is due to the increased commission. However, the RNG revenue climbed only 2.6% to €275.3 million. In the 4th quarter, the company also saw its RNG revenue drop 3.7% to €69.8 million.

Regulus believes that the software provider is failing to carry out its RNG strategy, to a point that now looks embarrassing. The analyst especially criticises Evolution’s acquisition of NetEnt and the company’s work since then.

It thinks that Evolution is badly running NetEnt, as it over-prices it commercially and offers largely legacy content. To make a turnaround, Regulus believes that the company would require a significant investment in product development. 

Evolution would also need bravery on pricing as the big experience in the live infrastructure could guide them forward. The analyst simply thinks that buying NetEnt was a wrong move by Evolution.

Regulus also claims that any struggle could have a bigger negative impact on the industry. This is due to Evolution’s enormous size and its subsequent role as a leader in the RNG market.

The Mixed Success of Evolution on a Global Scale

Apart from the RNG criticism, Regulus also commented on some other topics regarding Evolution. It described the company’s geographic growth as encouragingly spread out. Next, the analyst stated that Evolution clearly remains the software provider with the best live infrastructure.

Yet, Regulus didn’t fall short of warning the industry that there is a serious reason to be concerned in the future. It points out the volatile Asian market as well as the stagnation in Europe as a result of the regulatory pressure.

In the US, the lack of regulation continues to be a barrier to the industry’s growth. This is due to online gambling being legal only in 7 states. Regulus points out that North America has high-quality earnings, but it also features little chance of growth without any political support.

The analyst sees Latin America as a perfect area for further growth for Evolution Gaming. It labelled the whole region as one of the most attractive geographies for the company.

At the end of the Regulus’ analysis, it pointed out its future views of evolution. It stated that the company is relying on its top clients. Here it mentioned 1xBet as one of the provider’s top customers with a live revenue of over €2 billion.

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