SBC News Voice of the Sports Betting Industry
Evoke Plc has benefited from strong year-end trading, as the LSE gambling group expects its full-year EBITDA to be at the top end of the guidance range of £300m-to-£310m, a result deemed by leadership as “ahead of expectations“.
A post-close trading update for Q4 noted that Evoke had generated approximately 12-13% revenue growth on year-on-year comparatives.
The group’s improved performance was “driven by online growth of approximately 16-17% (c.18-19% in constant currency) with a continued improvement in the growth rate across core markets, all underpinned by the successful implementation of the Group’s strategy and supported by operator-friendly sports results during Q4.”
Expected results for 2024 will overturn a poor 2023, which saw Evoke (formerly 888 Holdings) post a stunted EBITDA of £310m as corporate accounts booked statutory losses of £56m.
Per Widerström, CEO of Evoke, commented: “I am pleased to report that the improving trends we announced in Q3 further strengthened into Q4, with the business delivering double-digit revenue growth.
As a result, revenue in the second half was at the high end of our 5-9% target growth range. While we were helped by some operator-friendly sports results in Q4, the significantly improved underlying momentum in the business gives me real confidence that the turnaround is working and we are well positioned to continue our growth trend into 2025.”
Of significance, leadership detailed that it had completed the initial objectives of its value creation plan (VCP), initiated at the start of the year, to “reset the group’s operating model towards sustainable profits.”
The turnaround of Evoke’s financial performance was detailed in Q3 as the LSE firm reported its “first quarter of year-on-year growth since Q1 2022,” the period in which it had completed its £2bn acquisition of William Hill.
Q3 growth was primarily attributed to double-digit revenue growth in the European markets of Spain, Italy, and Denmark. However, financial accounts detailed disparities in the UK and Ireland, where online gaming growth was offset by poor sports betting results, despite the high activity surrounding the UEFA Euro 2024 championships.
The VCP is led by new CEO Per Widerström, who has installed a new executive team, cost controls, and procedures to enhance the group’s operating model. Evoke has achieved the financial objective of returning to growth in 2024, “consistent with the mid-term target of 5-9% annual growth.”
Evoke is expected to release its FY2024 results on 11 March 2025, with accounts likely to be scrutinised for the reorganisation of the William Hill retail unit and much needed recovery in online growth across the UK and Ireland.
Widerström concluded: “Alongside the stronger trading performance, we continue to progress with transforming the Group’s capabilities for the mid- and long-term as we strengthen our competitive advantages, in particular better aligning our leading brands and products to a clearer customer value proposition. This turnaround is all supported by a clear market strategy, with our five core markets representing approximately 90% of our Q4 revenue. We are implementing a disciplined strategy with operational excellence to drive improved profitability and enable deleveraging.
“2024 was a pivotal year in which we began implementing our new strategy for success, radically transforming almost every area of the business, and moving decisively and swiftly to position Evoke for mid- and long-term profitable growth. We go into 2025 with improving momentum, as we continue to execute against our value creation plan. I look forward to outlining our progress and plans in more detail in March.”
