Evoke, the company behind some of the world’s best-known gaming brands, reported revenue growth of 1% this morning. The London-listed company owns and operates brands including William Hill, 888, and Mr Green.
Key Takeaways
- Evoke publishes Q1 results, revealing overall revenue rise of 1%.
- Stricter UK regulations meant a challenging Q1 for evoke.
- International performance was stronger, with revenue growth of 11%.
Group revenue hit £437.2 million in Q1 (€512.5 million/$581.3 million), a small increase on the £431.2 million recorded in the same period of 2024. While it’s not a decline, the reported 1% rise falls short of the company’s published growth target of 5-9%. CEO Per Widerström has maintained that its full-year growth objectives are still within reach, however.
Q1 Adjusted EBITDA was significantly higher year-on-year, taking LTM Adjusted EBITDA to over £330 million. The figures are in line with guidance published in the company’s FY24 results, supporting its focus on growth that is both sustainable and profitable in the long-term.
Tougher UK regulations slow revenue growth in Q1
The UK faces tightening regulations in the coming months, and the introduction of additional safer gambling measures is thought to have already played a part in the company’s modest revenue gains.
The online segment for the UK and Ireland actually saw a revenue decline of 1% year-on-year, to £162.5 million. The group recorded a 3% increase in gaming revenue, which reached £105.5 million in Q1, but betting revenue dropped by 9%, to £57 million.
Active players dropped by 21% year-on-year, with the group attributing this decline to its push on promotional activity in 2024. However, ARPU (average revenue per user), increased by 26% in Q1, testament to the company’s renewed focus on more profitable growth, as well as the recent launch of enhanced customer management tools.
Widerström remained optimistic despite the company’s UK&I revenue drop, commenting that evoke has already been “seeing stronger trends in April.”
Widerström went on to say that “with improved customer lifecycle management, a clear customer value proposition, new retail gaming cabinets, and an exciting product pipeline, we remain highly confident in our market position and the growth profile of the business.”
International performance remained strong throughout first quarter
In terms of the company’s international performance, things were far more positive. Revenue rose by 11% for international operations, topping £151.7 million in Q1.
Some markets saw particularly fast-paced growth. In Romania, year-on-year growth was said to be “significant,” a result of the company’s recent acquisition of Winner.ro and the start of its migration of 888 Romania onto the localized Winner.ro platform.
A number of strategic changes in Q1 drove international revenue growth. The quarter saw all remaining Mr Green markets successfully migrated onto the 888 platform, including one of the company’s core markets, Denmark.
William Hill Italy also migrated onto the Exalogic platform in Q1, a move that’s expected to strengthen both its competitive capabilities and localisation as 2025 progresses.
Widerström remains optimistic about revenue growth in 2025
"The Q1 performance is consistent with the update provided at our full year results, with improvements in April supporting revenue growth in the year-to-date of approximately 4%," Per Widerström said.
“While Q1 revenue was below our 5-9% annual growth target, Adjusted EBITDA is significantly higher year on year, with LTM Adjusted EBITDA reaching more than £330 million. This reflects the Group’s significantly more efficient operating model and our clear focus on creating value through sustainable, profitable growth.”
Accepting that UK&I Online and Retail performance wasn’t quite what the company had hoped for, Widerström was quick to reassure investors that momentum continues to build in the right areas of the business.
Widerström highlighted growth in its international core markets as being “particularly strong,” and mentioned that the company has already “moved swiftly to improve some of the underlying drivers of the performance” in the UK and Ireland.
The company also announced an additional £15-25 million of cost efficiencies at its FY24 results, due to be delivered over the course of 2025.
“We are moving decisively and at pace to position evoke for long-term success and to drive significant value, and I look forward to providing further updates about our progress as the year progresses,” Widerström said.
