Evoke Eyes Sustainable Growth Despite H1 Dip in Revenue

The leading betting and gaming company that owns and operates recognizable brands, including 888, William Hill and Mr Green, among others, evoke Plc, released a new trading update. On Thursday, the company disclosed its interim results for the first half of the year. The latest results covered the six months through the end of June 2024, pointing to a busy period, despite a slight dip in overall revenue.

Overall, the revenue in H1 2024 hit £862 million ($1.1 billion), marking a slight year-over-year decrease of 2% when compared to the H1 2023 result of £881.6 million ($1.13 billion). Still, a comparison to H2 2023 represented an increase of 4%. Evoke explained that the year-over-year decline in revenue was primarily the result of “UK Retail being down 8%, with UK&I online up 1% and International broadly flat.”

Last month, evoke released its Q2 2024 update, acknowledging its revenue was behind plan when compared to the growth projections for the period. Upon releasing the aforementioned update, the company highlighted it expects adjusted EBITDA margin between 13-14% for the first half of 2024.

In light of the latest results, evoke reported an adjusted EBITDA margin of 13.4% which was largely in line with its expectations. Still, adjusted EBITDA for the first half of this year was £116 million ($148.5 million), representing a decrease of 26% year-over-year.

Evoke explained the decline was “driven by the reduced revenues (particularly in Retail given the fixed cost base) together with lower gross margin, primarily as a result of country and product mix changes, with the ongoing improvement in the sustainability and quality of the business mix.”

The Company Stays on the Path to Transformation

Previously, evoke was known as 888. However, the company rebranded back in May, after the new identity secured shareholder approval. In its H1 2024 update, the company acknowledged its ongoing strategy and value creation plan that included its new corporate identity.

“As I said in our July trading update, while the financial performance in the first half was disappointing and behind our initial plan, the underlying health of the business is continually getting stronger. The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success.“

Per Widerström, CEO at evoke

Evoke’s CEO, Per Widerström, spoke about the first half of the year, acknowledging the dip in financial performance which was recognized as disappointing. Still, he said that the company’s strategy seeks to address such uncertainties and deliver sustainable success.

Moreover, Widerström said: “We are completely transforming this business,” adding that through extensive changes and corrections, evoke anticipates delivering long-term growth, value creation and profitability. Finally, the exec reiterated evoke’s financial targets, vision and plan that seeks to ensure the company’s sustainable growth.