Evoke Plc reports Q4 revenue growth and cautious 2025 outlook

Evoke Plc, the gambling group behind well known brands including William Hill (Europe), 888 and Mr Green, has published its financial update for the fourth quarter, providing insight into recent trading performance and the strategic challenges facing the business. The results highlight a mixed picture of operational progress, improving profitability and ongoing pressure from regulatory and fiscal developments, particularly in the United Kingdom.

The company reported fourth quarter revenue of £464m, reflecting a sequential improvement compared with the previous quarter while remaining below the comparable period last year. Management attributed the year on year decline largely to unusually favourable sporting outcomes in the prior year, which created a demanding comparison for betting revenue.

Despite these headwinds, Evoke emphasised that underlying momentum in several parts of the business remained positive, supported by growth in gaming revenue, improved performance in selected international markets and tighter cost discipline across operations.

Group revenue performance in the fourth quarter

Total group revenue for the fourth quarter reached £464m. This represented an increase of 7 per cent compared with the third quarter, indicating improved trading momentum as the year progressed. On a year on year basis, revenue declined by 3 per cent or by 4 per cent on a constant currency basis.

The decline relative to the prior year was primarily driven by betting revenue, which was affected by a particularly strong fourth quarter in the previous year. Evoke noted that favourable sporting results for customers during that earlier period had boosted betting payouts and reduced operator margins, making comparisons challenging.

Management highlighted that this comparison effect was largely isolated to betting activities and did not reflect a deterioration in customer engagement or product performance across the group’s broader portfolio.

Gaming revenue shows year on year growth

Gaming revenue emerged as a key area of strength during the quarter, rising by 9 per cent year on year. This growth was underpinned by improved performance across both online and retail channels and by a recovery in certain core markets.

In the United Kingdom, 888casino returned to growth, reflecting renewed focus on product quality, marketing effectiveness and customer experience. The recovery followed a period of weaker performance as the business adjusted to regulatory changes and refined its approach to responsible gambling and player protection.

Retail operations also contributed positively, with gaming revenue in retail up by 10 per cent year on year. This growth occurred despite a challenging environment for high street betting shops, marked by rising operating costs and increasing regulatory scrutiny.

International gaming revenue increased by 14 per cent compared with the same period last year. Evoke highlighted particularly strong performances in Italy and Denmark, both of which delivered record quarterly revenues. These results underscored the importance of geographic diversification and the resilience of regulated markets where Evoke has established brands and local expertise.

Betting revenue impacted by prior year comparison

In contrast to gaming, group betting revenue declined by 22 per cent year on year during the fourth quarter. The company emphasised that this decrease was largely attributable to the unusually strong performance recorded in the same period last year, driven by favourable sporting outcomes that benefited customers.

While betting volumes and customer activity remained broadly stable, the comparison effect had a pronounced impact on reported revenue. Evoke cautioned against drawing conclusions about underlying demand based solely on this year on year decline, noting that betting results can vary significantly depending on sporting outcomes over short periods.

Management reiterated its focus on maintaining a balanced product mix and reducing reliance on any single revenue stream, particularly in markets subject to heightened regulatory and fiscal uncertainty.

Performance across key markets

Evoke’s fourth quarter update provided further insight into performance across its main geographic markets, highlighting both opportunities and challenges.

In the United Kingdom, the group continued to operate in a complex regulatory environment characterised by ongoing reforms aimed at strengthening consumer protection. While these measures have increased compliance costs and constrained certain forms of marketing and product design, Evoke reported stable customer engagement across its core brands.

Italy emerged as a standout performer during the quarter, delivering record revenue. The market benefited from strong brand recognition, effective localisation and a favourable competitive position within the regulated framework. Denmark also achieved record quarterly revenue, reflecting consistent execution and a mature regulatory environment that supports sustainable growth.

Other international markets contributed to the overall increase in gaming revenue, reinforcing the strategic importance of expanding and optimising operations outside the United Kingdom.

Full year outlook for 2025

Looking ahead, Evoke provided guidance for the full year 2025, subject to ongoing strategic considerations. The company expects full year revenue of £1.79bn, representing growth of approximately 2 per cent compared with the prior year.

Adjusted EBITDA is forecast to fall within the range of £355m to £360m, which would represent an increase of between 14 and 15 per cent. This implies an adjusted EBITDA margin of around 20 per cent, in line with previous guidance and reflecting the benefits of cost control measures and operational efficiencies.

Management described this outlook as cautious but achievable, given the current trading environment and the actions already taken to mitigate cost pressures and regulatory impacts.

Focus on profitability and cost discipline

Improved profitability was a central theme of Evoke’s update. The company attributed its stronger EBITDA outlook to tighter cost controls and disciplined execution across its core markets.

Over the past year, Evoke has undertaken a series of initiatives aimed at streamlining operations, reducing overheads and prioritising investment in areas with the highest return potential. These efforts included rationalising marketing spend, optimising technology platforms and reviewing the performance of retail assets.

Management emphasised that cost discipline would remain a priority in 2025, particularly in light of rising taxes and operating expenses in the United Kingdom.

Strategic review and UK tax changes

As previously disclosed in December, Evoke’s board is currently evaluating strategic options in response to changes in the UK fiscal environment. From April, gambling operators in the United Kingdom will face higher taxes, increasing the financial burden on regulated businesses.

In this context, the board is considering a range of options, including the potential sale of the group or certain assets. While no decisions have been made, the review reflects the seriousness with which management views the impact of tax increases on long term competitiveness and sustainability.

The company has also indicated that it may close as many as 200 William Hill betting shops as part of its mitigation strategy. These closures would be focused on locations that are no longer economically viable under the new tax regime and cost structure.

Evoke has stated that it will not issue forward looking guidance while the strategic review is underway. The company has committed to updating investors when appropriate and to releasing its full year results in due course.

Executive commentary on performance and challenges

Chief executive officer Per Widerström commented on the fourth quarter performance and the broader outlook for the business.

“During Q4, we made good progress against our strategic plans, delivering our best quarter of the year and demonstrating the underlying momentum in the business.”

Widerström acknowledged the operational improvements achieved during the period while also highlighting the challenges posed by recent policy decisions. He described the UK Autumn Budget as a “significant blow to both Evoke and the wider regulated industry.”

He added “We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection and will ultimately serve to support further growth in the illegal black market.”

According to Widerström, higher taxes risk undermining the objectives of regulation by reducing the ability of licensed operators to invest in responsible gambling measures, technology and compliance while potentially driving customers towards unregulated alternatives.

Mitigation measures and operational adjustments

In response to these pressures, Evoke has moved quickly to implement mitigation plans aimed at preserving profitability and protecting long term value.

“We have moved quickly and decisively to execute on our mitigation plans, including the closure of retail stores that are no longer sustainable as well as broader cost savings,” Widerström said.

These measures form part of a broader strategy to adapt the business to a changing regulatory and economic landscape. While retail closures are likely to attract attention, management has emphasised that such decisions are taken with a view to maintaining a viable retail footprint rather than exiting the channel altogether.

Balancing regulation and market sustainability

Evoke’s update underscores the tension facing regulated gambling operators in mature markets such as the United Kingdom. On one hand, companies are expected to uphold high standards of consumer protection and social responsibility. On the other, increasing taxes and restrictions place pressure on margins and investment capacity.

The company’s leadership has consistently argued that a sustainable regulatory framework should balance these objectives by supporting a competitive legal market that can effectively channel demand away from unregulated operators.

While the outcome of the current strategic review remains uncertain, Evoke’s messaging suggests a desire to engage constructively with policymakers while taking necessary steps to protect shareholder value.

Conclusion

Evoke Plc’s fourth quarter update presents a nuanced picture of a business navigating both progress and pressure. Sequential revenue growth, a rebound in gaming and record performances in Italy and Denmark point to underlying strengths in the group’s portfolio.

At the same time, year on year declines in betting revenue, driven by prior year comparisons and the impact of rising UK taxes highlight the challenges facing the sector. The company’s cautious outlook for 2025 reflects these realities, as does the decision to undertake a strategic review.

As Evoke moves into the new financial year, its ability to balance cost discipline, regulatory compliance and strategic flexibility will be central to its long term prospects. Investors and industry observers will be watching closely for further updates as the review progresses and as the full year results are released.

FAQs

What revenue did Evoke Plc report for the fourth quarter?
Evoke Plc reported fourth quarter revenue of £464m reflecting an increase from the previous quarter but a decline compared with the prior year.

Why did year on year revenue decline in the fourth quarter?
The year on year decline was mainly due to unusually favourable sporting outcomes in the previous year which created a strong comparison for betting revenue.

How did gaming revenue perform during the quarter?
Gaming revenue increased by 9 per cent year on year supported by growth in the UK retail channel and strong international performance.

Which markets delivered record revenues for Evoke?
Italy and Denmark both achieved record quarterly revenues during the fourth quarter.

What was the trend in betting revenue?
Group betting revenue declined by 22 per cent year on year largely due to the strong prior year comparison.

What is Evoke’s revenue outlook for 2025?
Evoke projects full year 2025 revenue of £1.79bn representing growth of around 2 per cent.

What adjusted EBITDA does Evoke expect for 2025?
Adjusted EBITDA is expected to be between £355m and £360m implying a margin of around 20 per cent.

Why is Evoke reviewing strategic options?
The review is in response to rising UK gambling taxes and their potential impact on profitability and long term sustainability.

Could William Hill betting shops be closed?
Evoke has indicated it may close up to 200 William Hill betting shops that are no longer economically viable.

Will Evoke provide further guidance during the strategic review?
The company has said it will not issue forward looking guidance while the review is underway but will update investors when appropriate.