Evoke Plc has reported its “first quarter of year-on-year growth since Q1 2022” – the period during which the LSE-listed gambling group expanded its business by completing the £2bn acquisition of William Hill.
Q3 trading saw Evoke generate group revenues of £417m, up 3% on the 2023 comparative figure of £405m (+4% on a constant currency basis).
Management highlighted that ‘positive trends’ in Evoke’s Q3 performance were partially offset by customer-friendly sports results in September, which impacted revenue by approximately £17m.
Year-to-date, Evoke revenues stand at £1.27bn (-1%), with management maintaining “the expectation for the second half of 2024 to be in line with the mid-term target of 5-9% year-over-year growth.”
Group CEO Per Widerström commented: “I have now been in position for a year, and I am pleased that the turnaround of the business is working, with the first quarter of revenue growth since Q1 2022 and positive underlying trends.
We are achieving our plans to improve trading in the short term, while simultaneously radically transforming the Group’s capabilities for the long term.”
Q3 disparities were witnessed in the UK & Ireland, where a 12% increase in online gaming revenues to £115m was offset by a 13% decline in sports betting to £47m.
Online growth in the UK & Ireland was sustained as revenues reached £162m (+3%), despite a decrease in average monthly customers to 1.13m.
Once again, retail revenues decreased by 9% to £114m (Q3 2023: £125m), primarily due to lower betting win margins, which impacted revenues by £5m. On a year-to-date basis, retail revenues are down 8% to £373m (2024: £405m).
Retail actions saw Evoke appoint a new “Retail Managing Director in September, who has implemented several short-term measures aimed at improving trading”. Additionally, the company began rolling out over 5,000 new gaming machines in October, with plans to complete the full installation across the entire estate by Q1 2025.
Group results were bolstered by international markets, which recorded a 14% increase in online revenues to £139m, with Evoke reporting continued growth in Italy, Spain, and Denmark.
Notably, Evoke reported that online revenues grew by 11% overall in core markets, which now represent nearly 85% of the Group’s online revenues when including its new market of Romania.
Evoke continues to prioritise profitability and efficiency by sequentially reducing marketing costs while maintaining strong revenue growth, achieving £23 million in year-to-date cost savings through a streamlined operating model and increased outsourcing.
Leadership maintains its growth initiatives, as Evoke acquired Winner.ro in Romania to establish a market-leading position in the country. Furthermore, leadership sees opportunities for market share gains in Italy’s online casino sector.
Investors were informed that Evoke will fully deleverage from the US by Q1 2025 through the agreed sale of its joint venture business in New Jersey, Virginia, Colorado, and Michigan.
CEO Widerström, concluded: “I am pleased to report a strong quarter of progress as we continue to implement our strategy for success and deliver our value creation plan. We are moving decisively and at pace to position evoke for long-term growth, and I look forward to providing further updates about our progress in the coming months.”