Evoke LON: EVOK reported stable first-half revenue and lower adjusted EBITDA as increased gaming duties, particularly in the U.K., added a £46 million year-on-year cost headwind. Management said mitigation efforts, including more efficient marketing, cost savings and retail estate changes, offset more than half of the impact during the period.
Group revenue was £888 million, stable on a reported basis and up 2% on a like-for-like basis after accounting for 270 store closures compared with the prior year. Adjusted EBITDA fell 10% to £150 million, down £16 million year over year.
Per Widerström said the results demonstrated the resilience of the business in a “materially more challenging external environment,” while the company continued to focus on commercial efficiency, cost discipline, cash generation and operational execution.
Acquisition process remains on track
Widerström said Evoke’s board had recommended an acquisition by Bally’s Intralot following a strategic review initiated after the U.K. duty changes announced in November 2025. The board concluded that the proposal was the most attractive and deliverable option available to the company and its shareholders, he said.
The transaction remains subject to shareholder, regulatory and other approvals, including Evoke’s shareholder vote scheduled for Aug. 17. Widerström said relevant filings were progressing according to plan and the company still expected completion in the fourth quarter of 2026 or the first quarter of 2027.
Because of the pending transaction, management did not provide financial guidance and said it would not discuss transaction details beyond previously published documents.
U.K. online and retail offset duty pressure
Total online revenue increased 1% in the first half. U.K. and Ireland online revenue rose 4%, with gaming revenue up 7%, led by the William Hill brand. CFO Sean Wilkins said William Hill Vegas continued to post double-digit growth, supported by changes in marketing, promotions and customer value.
U.K. and Ireland online adjusted EBITDA increased 28%, or £17 million year over year, despite higher gaming duties. Wilkins said the improvement reflected revenue growth, operating leverage, reduced but more productive marketing investment, promotional efficiency and lower operating costs.
“This has not just been a cost-cutting exercise,” Wilkins said, pointing to the segment’s 4% revenue growth alongside lower marketing spending.
Retail revenue declined 3% on a reported basis because of the smaller shop estate, but grew 4% on a like-for-like basis. Retail adjusted EBITDA increased 5% despite wage and other cost inflation. The company closed 70 loss-making shops in the fourth quarter of the prior year and a further 200 during the first quarter of 2026.
Wilkins said the closures improved the profitability of the remaining estate. He also cited continued strength in gaming machines and the installation of 2,000 new self-service betting terminals as contributors to underlying market-share trends.
International results were mixed
International revenue fell 2%, although performance varied significantly by market. Italy revenue rose 21% and Denmark revenue grew 13%, while Spain, Romania and the rest-of-world operations declined.
International adjusted EBITDA fell 20%. Wilkins attributed the decline primarily to higher duty rates in Italy and Romania, as well as a shift in revenue mix toward higher-duty markets. Romania’s duty rate increased from 21% to 30%, he said.
The Italian duty increase accounted for nearly £10 million of the company’s first-half EBITDA impact from duty changes. Of the total £46 million duty headwind, £30 million came from the U.K., about £10 million from Italy and the remainder largely from Romania, according to Wilkins.
Management said Spain had been affected by product issues, particularly in sports betting, though it has increased investment in sports and gaming products, launched a new William Hill app and moved resources from the U.K. to accelerate its Spanish product and technology roadmap. Widerström said the company expected commercial and customer-focused improvements implemented in the first half to begin having an effect in the second half.
In Romania, management said a weaker economy, higher taxes and growth in the unregulated market had weighed on performance. The company said it was managing marketing and promotional investment carefully to protect returns and preserve cash and liquidity.
Cash flow, leverage and customer trends
Evoke generated £85 million of underlying free cash flow in the first half. However, net debt increased by about £37 million after exceptional and other one-off outflows, while lower last-12-month EBITDA pushed leverage to 5.6 times.
- Capital expenditure totaled £51 million and was described as slightly front-loaded due to the retail closure program and product investment.
- Exceptional costs were £27 million, including £5 million related to the retail closure program and £7 million for the strategic review.
- The company repaid the remaining £11 million of its 2026 William Hill bonds and paid £11 million toward a historic Austrian gaming tax liability.
- Period-end cash was £106 million, with £43 million available under an undrawn revolving credit facility, for total liquidity of about £150 million.
Group monthly active users declined 6% year over year, which Wilkins linked partly to weaker conditions in Romania and Spain. He also said the company has deliberately focused on customer value, average revenue per user and margins rather than lower-return volume.
Sportsbook stakes declined 9%, but sportsbook margin rose 60 basis points to 13.3%. Wilkins said the margin improvement was not driven by favorable sporting outcomes, but instead reflected an intentional emphasis on higher-margin products such as accumulators and bet builders, along with product improvements.
Management said the World Cup exceeded its revenue expectations and produced stronger-than-expected customer engagement. Widerström said group-stage results were more customer-friendly, while knockout-stage results were more favorable for operators. The company said only that it continued to trade in line with expectations following the period end.
About Evoke (LON:EVOK)
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