Evoke Plc online gaming unit returns to growth
But the former 888 has revised downwards its full-year guidance.
UK.- Evoke Plc, the rebranded 888 Holdings, has reported interim results for the first half of the year. Its online gambling division returned to growth, but the London-listed gaming group has adjusted downwards its full-year guidance owing to weaker revenue.
Q2 trading was fairly stable year-on-year. Revenue was down 2 per cent at £862m but UK and Ireland online revenue rose 1 per cent to £339m, driven by a 6 per cent increase in Q2. Revenue from the William Hill retail unit fell by 8 per cent to £258m, while international revenue held stable at £265m, with 4 per cent constant currency growth in Italy, Spain and Denmark helping to offset Evoke’s exit from the US market.
The company said EBITDA was £35-40m behind its plan due to missing revenue expectations and the timing of cost savings. UK EBITDA was £20m behind that forecast due to lower than expected returns from planned marketing overspend, particularly Cheltenham.
Regarding the performance of William Hill, Evoke says there will be a change in leadership as the customer offering was “falling behind the competition. It will also revamp its gaming machines and SSBT products, in-store payment systems and sports broadcasting.
Group CEO Per Widerström said: “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.
“We are undertaking a complete reset and transformation of the business, and the scale of change is significant but necessary. This transformation will take time but will enhance operational efficiency, leading to a bigger, more profitable, and more cash-generative business in the future.”
He added: “Our strategy defines what good looks like and how we get there, and while no journey is ever straightforward, we have learnt a lot already so far this year as we pursue our goals. 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.
“I am really pleased with the strategic progress we have made so far and I’m confident this will set us up for profitable growth in H2 2024 and beyond as we continue to invest for the mid and long-term with high conviction. Our plans for 2025 and beyond are unchanged and the strategic and operational progress we have made during the first half gives me increased confidence about delivering our value creation plan.”
