Evoke reports £888m H1 2025 revenue amid profit surge

Evoke (LSE: EVOK) has reported strong financial results for the first half of 2025, posting group revenue of £887.8 million ($1.2 billion), marking a 3% year-on-year increase. On a constant currency basis, revenue growth reached 4%, reflecting robust performance in international markets and operational efficiencies across the business. This performance represents the fourth consecutive quarter of revenue growth and demonstrates significant margin expansion, reflecting the group’s ongoing strategic transformation.

Revenue growth driven by international markets

The international segment emerged as the primary driver of growth during the period, posting a 13% increase in revenue, which translates to 15% on a constant currency basis. Adjusted EBITDA for the international business more than doubled to £86 million, underscoring the success of Evoke’s strategic initiatives in overseas markets. Core market strength, coupled with ongoing enhancements to products and platforms, contributed to this positive momentum.

According to Evoke, international expansion efforts—including the integration of Winner.ro in Romania and platform migrations for Mr Green and William Hill Italy—have helped localize offerings and streamline operations, resulting in higher customer engagement and revenue generation.

UK & Ireland performance

Revenue in the UK & Ireland Online segment declined by 1% year-on-year. Evoke attributed the drop to the timing of major summer sporting events in 2024 and a shift in marketing strategy aimed at optimizing customer acquisition costs and lifetime value. Despite the minor decline in revenue, profitability in this segment improved markedly. Adjusted EBITDA increased by 37% to £60 million, demonstrating that operational efficiency measures have effectively mitigated top-line pressure.

Retail revenue in the UK fell 2% during the period but showed signs of recovery in Q2. This rebound followed the completion of a rollout of 5,000 new gaming cabinets in March, which enhanced the customer experience and supported sequential growth in retail performance.

Profitability gains and cost efficiencies

The group’s adjusted EBITDA for the first half of 2025 increased by 44%, reaching £165.9 million, bringing the total for the trailing twelve months to £363 million. The increase was driven by several factors, including higher gross margins, more efficient marketing spend relative to revenue, and ongoing cost-saving initiatives across the organisation.

Reported EBITDA more than tripled to £141.3 million, aided by a substantial reduction in exceptional items compared with H1 2024. On a statutory basis, Evoke posted a profit after tax of £5.4 million on an adjusted basis, reversing a prior-year loss of £29.9 million. These results highlight the effectiveness of the group’s strategic transformation and operational reset.

Improved leverage and liquidity position

Evoke reduced leverage to 5.0x from 6.7x a year earlier, reflecting disciplined financial management and improved operational cash flow. The group’s total liquidity at the end of June 2025 stood at £250 million, comprising £121 million in cash and £129 million in undrawn revolving credit facilities. This financial flexibility positions Evoke to continue investing in growth initiatives while maintaining a strong balance sheet.

Strategic transformation and operational initiatives

Evoke has identified three key strategic pillars guiding its transformation: enhancing operational efficiency, revitalizing its brand and product offerings, and fostering cultural change throughout the organisation.

Operational initiatives have included the adoption of AI and intelligent automation across multiple group functions, improved customer segmentation, and enhanced lifecycle management. These initiatives contributed to an 11% increase in average revenue per user, reflecting more personalized customer engagement and targeted marketing efforts.

Brand initiatives during H1 included the launch of William Hill’s new customer value proposition, centred on “betting done properly,” alongside product-led engagement tools such as the in-house Jackpot Drop feature. In retail, the introduction of new gaming cabinets improved the in-store experience and supported sequential growth.

CEO Per Widerström commented, “We are seeing clear evidence of the transformation and operational reset we’ve undertaken, with the Group delivering continued revenue growth, significantly improved profitability and meaningful deleveraging during the first half of the year.”

Momentum from Q1 2025

The H1 performance builds on momentum recorded in Q1 2025, when group revenue rose 1% to £437 million and adjusted EBITDA exceeded £330 million on a trailing twelve-month basis. International growth in Q1 was driven by an 11% uplift, including the integration of Winner.ro in Romania and platform migrations for Mr Green and William Hill Italy.

These initiatives helped streamline operations and enhance localisation, laying the foundation for continued success in Q2. Operational improvements have also allowed Evoke to optimise marketing spend, improve margins, and maintain competitive positioning in key markets.

Trading outlook and guidance

Trading activity in the third quarter, up to 10 August 2025, has proceeded in line with the company’s internal projections. Evoke has reaffirmed its full-year revenue growth guidance of 5–9%, with an adjusted EBITDA margin target of at least 20%. Management anticipates further profitability improvements in H2, supported by operating leverage, AI-driven efficiency gains, and new product launches.

Per Widerström added, “The acceleration in Q2 performance, together with a strong pipeline of product enhancements and operational efficiency initiatives, underpins our confidence of improved growth in H2 and reiterated guidance of 5–9% revenue growth and an adjusted EBITDA margin of at least 20% in 2025.”

Medium-term objectives

Evoke’s medium-term goals remain unchanged. The group aims to achieve annual revenue growth of 5–9%, with approximately 100 basis points of adjusted EBITDA margin expansion per year from 2025 onwards. Leverage is targeted to reduce below 3.5x by the end of 2027, reflecting the company’s commitment to strengthening financial stability while supporting growth initiatives.

The company’s strategic transformation demonstrates a clear path toward sustainable growth, operational efficiency, and enhanced shareholder value. By balancing investment in international markets, brand and product innovation, and cost discipline, Evoke is positioning itself to remain competitive in a rapidly evolving industry.

Conclusion

Evoke’s H1 2025 results reflect the successful execution of its strategic transformation, highlighting strong revenue growth, improved profitability, and meaningful deleveraging. International markets have emerged as a key growth driver, while operational efficiencies, AI adoption, and targeted marketing initiatives have enhanced profitability across all segments. Despite minor declines in UK & Ireland Online and retail revenue, the company has demonstrated resilience and the ability to adapt to evolving market conditions.

Looking ahead, Evoke is well-positioned to sustain momentum, with medium-term targets focused on continued revenue growth, margin expansion, and financial stability. The combination of operational excellence, brand and product innovation, and cultural change provides a solid foundation for long-term value creation for shareholders and stakeholders alike. The first half of 2025 underscores Evoke’s commitment to transforming its business while maintaining a disciplined and forward-looking approach in a competitive global market.

FAQs

What was Evoke’s total revenue for H1 2025?
Evoke reported total revenue of £887.8 million for the first half of 2025.

What drove Evoke’s international revenue growth?
International growth was driven by market expansion, product enhancements, and integration of platforms like Winner.ro, Mr Green, and William Hill Italy.

How did UK & Ireland Online perform in H1 2025?
UK & Ireland Online revenue declined 1% due to event timing and marketing changes, though profitability improved with a 37% increase in adjusted EBITDA.

What was the adjusted EBITDA for H1 2025?
The group’s adjusted EBITDA rose 44% to £165.9 million in H1 2025.

How did retail revenue change in H1 2025?
Retail revenue fell 2% year-on-year but returned to growth in Q2 following the rollout of 5,000 new gaming cabinets.

What is Evoke’s leverage ratio as of June 2025?
Leverage improved to 5.0x, down from 6.7x a year earlier.

What strategic pillars support Evoke’s transformation?
Operational excellence, a renewed brand and product focus, and cultural change across the organisation.

How is Evoke using AI and automation?
AI and intelligent automation are applied across group functions to enhance customer segmentation, lifecycle management, and operational efficiency.

What are Evoke’s full-year 2025 guidance targets?
Evoke targets revenue growth of 5–9% and an adjusted EBITDA margin of at least 20% for 2025.

What are Evoke’s medium-term goals?
Evoke aims for 5–9% annual revenue growth, 100 basis points of adjusted EBITDA margin expansion per year, and leverage reduction below 3.5x by 2027.