Evoke reports H1 loss of £143m

The former 888 Holdings says it will focus on short-term actions to maximise margins.

UK.- London-listed Evoke Plc has reported a loss of £143m for H1, up 300 per cent from a loss of £32m in 2023. The operator, formerly 888 Holdings, saw performance decline in the first half, particularly at the William Hill retail business in the UK.

Group revenue was in line with expectations at £862m, and online revenue rose 1 per cent year-on-year to £338m. However, William Hill retail revenue was down 7 per cent to £258m and online sports betting revenue was down 5.3 per cent despite Euro 2024. Adjusted EBITDA fell by double digits in all core segments, with UK brands seeing “lower than expected returns” from Q1 marketing and promotional activities.

Evoke’s International Unit saw revenue remain flat at £265m despite growth in the core markets of Spain, Italy and Denmark. That was due to reduced revenues in markets where the group is changing business models and due to the exit from its US joint venture.

The company said William Hill’s gaming offering in particular had “fallen behind the competition”. It said it had pursued an in-house solution for gaming cabinets and software to drive differentiation but that initial tests showed customers were reacting poorly to the different product proposition, despite a broader range of games and unique promotion tools. As a result, the company is acting on the data and reworking its plans.

Group CEO Per Widerström said: “The return on our marketing, primarily in UK Online, was lower than expected, leading to an online marketing ratio of 25 per cent, which was higher than planned. We have put in place a new and experienced commercial leadership team and marketing leadership team, and we are transforming the way we plan and undertake our marketing.”

Widerström said that the group was now focused on “short-term actions” to maximise operating margins and return to growth in H2. Evoke is maintaining its guidance of a rise in revenue of 5 to 9 per cent and an adjusted EBITDA margin of around 21 per cent amid £30m of targeted cost efficiencies for the full year.

Widerström said: “We are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid and long-term profitable growth and value creation. We have already taken bold, decisive actions to both instigate a turnaround in short-term trading performance and simultaneously invest in the Group’s capabilities to drive step-change value creation and build a bigger, more profitable, more sustainable, and more cash generative business in the future.

“We have a clear plan, vision, and financial targets. As a result of our strategic progress and the enhancements already made to the business, I am even more confident about delivering our Value Creation Plan and driving sustainable profitable growth over the coming years.”