Evoke (LON:EVOK) Issues Quarterly Earnings Results

Key Points

• Evoke reported a quarterly EPS loss of GBX 0.40, while first-half revenue remained broadly stable at £888 million. Adjusted EBITDA fell 10% to £150 million, pressured by a £46 million increase in gaming duties.
• UK & Ireland operations performed well, with online revenue up 4% and EBITDA up 28%, while retail like-for-like revenue rose 4%. International EBITDA declined 20% because of higher duties and weaker results in Spain and other markets.
• The Bally’s Intralot acquisition remains on track, pending approvals and expected to close in Q4 2026 or Q1 2027. However, net debt rose by about £37 million, leverage increased to 5.6x, and liquidity stood at approximately £150 million.

Evoke (LON:EVOK - Get Free Report) announced its quarterly earnings results on Wednesday. The company reported GBX (0.40) earnings per share (EPS) for the quarter, Digital Look Earnings reports. Evoke had a positive return on equity of 125.82% and a negative net margin of 30.73%.

Here are the key takeaways from Evoke's conference call:

• Recommended Bally’s Intralot acquisition remains on track, subject to shareholder, regulatory, and other approvals, with completion expected in Q4 2026 or Q1 2027; the company is not providing forward-looking financial guidance.
• First-half revenue was broadly stable at £888 million, but adjusted EBITDA fell 10% to £150 million after a £46 million year-on-year increase in gaming duties, including approximately £30 million from the U.K.
• UK & I Online revenue rose 4% and adjusted EBITDA increased 28%, driven by stronger marketing and promotional efficiency, operational savings, and continued double-digit growth at William Hill Vegas. Retail like-for-like revenue grew 4% and EBITDA rose 5% despite closing 270 loss-making shops.
• International adjusted EBITDA declined 20% as higher duties in Italy and Romania, a shift toward higher-duty markets, and weaker performance in Spain and other regions compressed margins. Management is increasing product investment in Spain while restricting spending in weaker markets such as Romania to preserve returns and liquidity.
• The group generated £85 million of underlying free cash flow, but exceptional and other outflows caused net debt to rise by about £37 million and leverage to increase to 5.6x; period-end liquidity was approximately £150 million.

Evoke Price Performance

EVOK stock traded up GBX 0.10 during trading on Wednesday, reaching GBX 45.60. The company had a trading volume of 314,332 shares, compared to its average volume of 4,031,571. Evoke has a 52 week low of GBX 19.76 and a 52 week high of GBX 66.40. The company has a market cap of £205.26 million, a P/E ratio of -0.37 and a beta of 1.00. The business has a 50 day moving average of GBX 45.64 and a 200 day moving average of GBX 36.70.

Analyst Ratings Changes

A number of research analysts recently issued reports on EVOK shares. JPMorgan Chase & Co. boosted their price target on Evoke from GBX 34 to GBX 52 and gave the company a "neutral" rating in a report on Tuesday, June 16th. Berenberg Bank increased their price objective on Evoke from GBX 33 to GBX 52 and gave the stock a "hold" rating in a report on Tuesday, June 16th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of GBX 46.33.

About Evoke

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