July 18, 2024 3 min read

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Evoke Behind Plan as Revenue Stumbles

Evoke is still finding its footing as it rallies under its new company identity and as it attempts to boost annual revenue growth by an ambitious target

Evoke, the recently rebranded company emerging from 888 Holdings, has reported a slower-than-expected second quarter of the year.

In its Q2 2024 update, the company acknowledged that it was what it called “behind plan” on its revenue growth projections, prompting renewed soul-searching among the company’s top brass.

Evoke Still Finding Its Footing in Post-888 Era

The company cited some improvement, though, with the UK bringing 3% more from the online segment, toting up to £174 million ($226.01 million). Retail revenue in the UK, though, contracted 8% over the period to £128 million ($166.26 million).

International revenue also increased in the second quarter, by 2% to £129 million ($167.56 million), with the company continuing to enjoy strong revenue injections from Italy, Denmark, and Spain.

These three jurisdictions alone account for 60% of the online gaming revenue, which is both a blessing, but also a liability down the road should the company fail to diversify and seek toehold in other markets.

We are focused on mid and long-term profitable growth and value creation and during the first half we have made bold, decisive changes to improve almost every area of the business,” evoke CEO and Catena Media veteran Per Widerström said. He acknowledged the disappointment in missing the mark, but remained buoyant about the future:

Whilst it is disappointing that the first half financials are behind our plan, the underlying health of the business is getting stronger, and the corrective actions we have already taken make us even more confident that our strategic approach is sound and will achieve sustainable success.

Evoke CEO Per Widerström

Speaking of diversification, evoke has chosen to pare down its presence in the United States. The company announced that it was flogging off its B2C business assets earlier this year, soaking the cost of the abrupt divorce with the market, but also realizing that its resources could be better used elsewhere.

All of this has left evoke looking at an EBITDA of £35 million – £40 million ($45.5 million – $51.96 million) shorter than initial estimates for the company’s quarterly results. Cost savings have not materialized the desired results just yet, with the company reflecting on what has happened.

Changes Go as Expected, But Benefits Take Time to Kick In

Regardless, evoke remains cautiously optimistic about the future, citing the rebranding from 888 as the correct move forward. The company added that it had already rejuggled its pecking order bringing in as many as 11 executives since October 2023 when it vowed to change its ways.

So, what’s next for the company? Evoke is hopeful that it can notch up growth of a 5%-9% rate over the coming months, with a particular focus on Q3 and Q4. The company is also upbeat about £30 million ($30.97 million) in expected savings from its operations. The same growth is cited for annual revenue growth in 2025.

The company still acknowledges that there are challenges ahead but avows that it will be building back towards better operational margins at a slow but firm pace.

Journalist

Jerome brings a wealth of journalistic experience within the iGaming sector. His interest in the industry began after graduating from college, where he regularly participated in local poker tournaments. This exposure led him to the growing popularity of online poker and casino rooms. Jerome now channels all the knowledge he's accrued to fuel his passion for journalism, providing our team with the latest scoops online.

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