Soon-to-be-acquired evoke PLC has taken the chance to urge the UK government against further tax rises in its Q3 results.
The business, which has accepted an offer of a takeover from Bally’s Intralot, reported group revenue of £406m for the period – 7% down year-on-year (or 2% on a like-for-like constant currency).
Panic on the streets
Corporate accounts are under a period of consolidation as evoke has around 270 fewer of its William Hill retail shops than it did this time last year. The company excluded this impact from these results.
A decision was made on 31 March – the day before the increase in Remote Gaming Duty (RGD) from 21% to 40% was implemented – to close approximately 200 of these following a thorough company review.
The firm attributed the downturn in performance to “customer friendly sports results in the beginning of the football season” which led to a 1-2 percentage point decline to YoY revenue growth.
Per Widerström, Chief Executive Officer of evoke, said that, despite evoke’s resilience, already-implemented tax increases are beginning to take their toll on the embattled business.
“On an underlying basis the business continues to show resilience and reflects our continued emphasis on profitability and cash generation following the substantial increases in gaming duties, particularly in the UK,” he said.
“The closure of 270 shops over the past year shows the real impact on jobs and livelihoods from higher industry taxation.”
“We urge the UK Government to carefully consider any further increases ahead of its forthcoming Autumn Budget.”
Per Widerström, CEO of evoke
Taxation a continued drag for evoke
Ahead of final merger proceedings, leadership awaits next week’s Autumn Budget statement on the tax raise of Machine Games Duty (MGD) and its impact on the remaining portfolio of around 1,000 betting shops.
The industry fears the worst outcome of a doubling on Category B gaming machines’ duty from 20-40%.
This week, it has been reported that the tax will rise from 20% to 25% – something which some media outlets are portraying as a win for the industry. Others have been quick to remind them that a tax increase is, in fact, not a victory.
Grainne Hurst, Chief Executive Officer of the UK’s trade body for the sector, the Betting and Gaming Council (BGC), warned that “adding another tax rise will have consequences”. evoke and several other major UK bookies have already laid bare the consequences of earlier tax hikes.
Bally’s deal could complete before new year
As mentioned above, evoke is in the process of being acquired by Greece-headquartered industry firm Bally’s Intralot, for a price of 52p-per-share, or £243.1m.
The company affirmed that the takeover process is on track and may even complete before the year is out.
Widerström added: “We remain focused on disciplined execution and operational efficiency as we progress towards completion of the acquisition, which continues to progress as planned towards completing in late Q4 2026 or early Q1 2027.”
End of year proceedings see evoke expected to delist from the London Stock Exchange (LSE) in late 2026, as assets are merged with Athens-listed Bally’s Intralot.
