Evoke H1 revenue hit by UK tax increases as Bally’s Intralot takeover edges closer

Evoke revenue was broadly flat across H1 2026 as tax rises in the UK continued to bite ahead of its takeover from Bally’s Intralot.

Evoke reported its H1 2026 results on Wednesday, with revenue dropping slightly year-on-year to £887.5 million from the £887.8 million reported in the same period of last year.

Evoke’s EBITDA dropped 12% to £124.8 million, and while its adjusted EBITDA of £150.2 million was “in line with expectations”, the company was hit by a £46 million year-on-year increase in gaming duties.

This rise in taxes largely stemmed from the UK, which increased its Remote Gaming Duty rate from 21% to 40% from 1 April this year.

Evoke said over half of the gross duty headwind was offset during H1 thanks to a lower but more efficient marketing spend, improved promotional efficiency and operational cost savings.

The company’s CEO Per Widerström said Evoke’s efforts to improve its operations had put it in a stronger position to withstand the increased cost pressures facing the sector.

“The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK,” he said.

“We responded decisively, focusing on the areas within our control. As a result of the significant operational improvements we have implemented across the business in recent years, coupled with the successful mitigation of a meaningful proportion of the increased duty costs, we have been able to maintain operational momentum, deliver like-for-like revenue growth, and protect profitability and cash generation.”

Evoke’s regional performance

Evoke’s UK&I online revenue rose by 4% with 7% growth in gaming, led by a continued strong performance from William Hill.

Adjusted EBITDA from Evoke’s UK&I online segment also increased 28% despite the headwinds.

However, the company said revenue from 888 had declined, with Evoke attributing this to its strategic focus on profitability and customer economics ahead of pursuing lower-return volume.

Elsewhere, international revenue slipped 2% despite growth in Italy (21%) and Denmark (13%). Evoke identified Spain, Romania and other “Rest of World” markets in which performance was weaker.

International adjusted EBITDA plummeted 20%, stemming from increased duty rates in Romania and Italy.

Notably, Italy had been identified by some as a business that Bally’s Intralot could look to sell off following the takeover’s completion.

However, Bally’s Intralot CEO Robeson Reeves has been bullish on that aspect, previously stating: “People will talk to me and say, ‘Why don’t you sell Italy?’ or something like that. Italy is one of the prized assets, probably one of the things I’d refuse to sell.”

How did retail perform for Evoke?

Evoke’s retail revenue grew 4% year-on-year on a like-for-like basis, aided by the 2025 rollout of gaming machines as well as improvements to its SSBTs.

However, revenue declined 3% on a reported basis, affected by its smaller retail estate.

Evoke had approximately 270 fewer retail shops in H1 compared to the same period of last year, with the company closing 200 William Hill shops in May 2026 alone, representing around 15% of its retail estate.

In this latest update, the company said it was prioritising investment in its remaining shops and improving the profitability of the retail estate.

Bally’s Intralot takeover on track

In June, Bally’s Intralot announced it had agreed a deal worth around £243.1 million for an all-share takeover of Evoke.

Evoke had been considering a selling off all or part of its business since launching a strategic review in December 2025, triggered by in part by UK tax rises.

The deal still has a number of steps before completion, including shareholders and regulatory approvals.

However, the completion of the deal remains on track for either Q4 2026 or Q1 2027.

Widerström said the company’s priorities “remained unchanged” until the takeover’s completion.

“We continue to focus on serving our customers, supporting our colleagues, maintaining disciplined execution and delivering strong cash generation,” he outlined.

Evoke gave no forward financial guidance because of the proposed takeover.