Investing.com -- Shares of Evolution Gaming fell sharply today, down 17%, following the company’s report of a constant currency revenue growth rate of 6.1% which, at 3.9% reported, fell short of market expectations by 4%.

The live casino solutions provider also experienced a significant 9% EBITDA miss for the first quarter, further unsettling investors.

The company’s revenue growth has decelerated across all regions, with Europe showing a stark decline from 9% growth in the fourth quarter of 2024 to a 1% decrease, and Asia’s growth slowing to 2% from 11%. The lower-than-anticipated growth rates are projected to persist into the second quarter.

Despite the overall slowdown, revenues from regulated markets have seen a 19% increase, contrasting with a 6% decrease in unregulated market revenues.

Evolution’s challenges this quarter also included ongoing cyberattacks in its Asian markets and proactive changes in response to the evolving regulatory environment in Europe. Additionally, foreign exchange headwinds have impacted the company’s financials.

However, Evolution has highlighted some positive developments, such as the release of 110 new games and the opening of two new studios, with plans to open three more in the second half of 2025. The company also reiterated its full-year EBITDA margin guidance of 66%-68% and reported the buyback of 2.1 million shares.

The company’s performance this quarter reflects the impact of various headwinds on its operations, including the cyberattacks and regulatory changes.