William Hill owner Evoke considers sale of entire business or select units
The London-listed gambling operator has launched a strategic review of its operations.
UK.- Evoke Plc, the FTSE-listed gambling operator formerly named 888 Holdings, has confirmed the launch of a full strategic review of its operations. It said the process that could lead to the sale of specific assets or even of the entire business, which owns Williams Hill’s European assets as well as Mr Green, the various 888 brands and Winner.ro in Romania.
In a brief statement issued through the London Stock Exchange today (December 10), the operator said it would explore “a range of potential alternatives”. While it stressed that there is no guarantee the review will lead to any transaction, it has appointed Morgan Stanley & Co International and Rothschild & Co as financial advisers. Evoke’s share price rose by around 14 per cent today following the announcement
According to Evoke, the review “will include the consideration of a range of potential alternatives to maximise shareholder value, including, but not limited to a potential sale of the group, or some of the company’s assets and/or business units.” It said further announcements will be made “when and if appropriate”.
Before the recent announcement of a rise in UK gambling tax, there had been reports that Evoke was considering the closure of 200 William Hill betting shops in the country. More recently, there have been reports that the group was seeking a buyer for its Italian business, which recently renewed its licence under the new Italian gambling framework.
Evoke was the group whose share price was most severely affected by last month’s announcement of the increase in Remote Gaming Duty in the UK, falling by 18 per cent on the day the Autumn Budget was announced due to its historic focus on online gambling.
CEO Per Widerström said then that the former 888 Holdings would immediately implement mitigation plans through which it would aim to offset around half of the tax rise’s impact in the medium term. This would include retail closures, reduced marketing, supplier savings, general operating cost savings and possible changes to its offerings, he said.
Evoke’s turnaround
Evoke has had a difficult through years amid regulatory scrutiny from the Gambling Commission, an aborted attempt by former GVC (now Entain) boss Kenny Alexander to take the helm and heavy debt due to its purchase of William Hill’s European business from Caesars.
However, recent months have seen an improvement, particularly in its international division, whose revenue rose 8 per cent to £150.4m in Q3, driven by a 13 per cent increase in gaming revenue. Italy, Denmark and Romania all recorded double-digit growth, with Italy highlighted as a key contributor.
Group-wide revenue for Q3 was £435.4m, up 5 per cent year-on-year. Online operations in the UK and Ireland generated £163.3m, a 1 per cent increase, while UK retail revenue climbed 6 per cent to £121.7m.
Evoke has reiterated its adjusted EBITDA margin guidance of at least 20 per cent. Looking further ahead, the company reaffirmed medium-term targets of 5–9 per cent annual revenue growth and around 1 per cent EBITDA margin expansion per year through 2027.
