Evoke H2 gains power single-digit revenue and EBITDA growth, improved product drives higher-value players 

In the company’s announcement of its FY2024 results today (26 March), Evoke plc CEO Per Widerström said the structural and product improvements put in place across the business had improved customer value and driven improved results across the company.

Adjusted EBITDA for the year increased 4% to £312 million for the group, again largely driven by H2 profitability. Up to 63% of the adjusted EBITDA related to the second half of the year. When looking at EBITDA, H2 accounted for 85%, versus the first half of the year.  

The operator said it had “achieved all commitments outlined in its H1 results to deliver a significant step change in profitability in H2”.

This included “a £30 million cost saving programme, more effective marketing that is focused on our core customers and enhanced product”, it said in its H1 earnings report.  

UK still makes up majority of Evoke’s revenue  

In terms of revenue split, online revenue was up 6% on 2023 to £1.2 billion, with the UK accounting for 55.2% of the total, versus the international business at 44.5%. 

Further breaking down these figures, UK online revenue increased 9% during the 12-month period while international revenue was up 7%, but this was offset by a continued decline in UK retail (-5%).

This stagnant performance is being addressed, the operator said, as an entire fleet of new betting machines was rolled out between October 2024 and March.  

On the company’s earnings call this morning, one analyst asked whether favourable sports results had helped boost revenue and profit growth in H2. Group CFO Sean Wilkins said while there had been “good sporting results” in Q4, this only offset negative results in the previous quarter.  

Wilkins said “pretty dreadful results had quite a fundamental impact on the business”, but that results on the whole throughout the year had been largely neutral.  

Total cost savings for the year came in at £48 million, and this was attributed to “a simplified operating model focused on customer experience, redesigned product and technology function, releasing more products quicker, increased AI and automation, and efficiency through the supply chain”.  

‘Higher-quality’ revenue mix as customer value grows  

One analyst noted the William Hill operator’s reporting of declining betting stakes and increasing sportsbook margin in 2024. Widerström assured this was due to a shift in customer mix which had seen higher-value players increase, meaning fewer bets but more revenue per customer.  

“We have a fundamental shift when it comes to the customer mix, so we go for core, high value over volume. The customer mix is more sustainable than before and that will of course have an impact on the stakes,” he said.  

This is down to improved personalisation in betting promotions and the new bet builder offering across its William Hill product, he added. 

Evoke plc turnaround driven by sustainable growth

Widerström said the company was primed for “sustainable profitable growth” going forward, thanks to a higher quality revenue mix. Regulated revenue accounted for 95% of total revenue in 2024, up from 94% the previous year and 90% the year before that.  

This, Evoke plc said, was due to its continued focus on its core markets, including the UK, Italy, Spain and Denmark. It also added Romania to this mix in 2024 through the acquisition of local brand Winner.ro in August.  

The group said it has significantly lower exposure to dotcom markets (~4% vs ~13% in 2021) as its customer base, in the UK specifically, is becoming more sustainable and “well positioned for upcoming regulatory change”, the company said.  

Responding to analyst questions on how Evoke had regained some market share in the UK, Widerström highlighted some of the core product changes made during the year, including new landing pages for racing and football betting.

He said the customer feedback on this has been extremely positive and additional updates were in the pipeline for 2025.  

Evoke plc’s new Romanian business was said to have a market share of 7%, including its 888 casino product. Its William Hill Online brand in the UK is reported to have a 9% share of the market, while its retail offering has a 22% market share.   

Gross profit remains flat 

Taking a look at the bottom line, gross profit for the period was largely flat (+1.6%) at £1.15 billion. Evoke reported an operating loss of £200,000, compared to a profit of £24.2 million last year.  

In terms of outgoings, capex for the year was around £100 million to £110 million. The company recorded an exceptional one-off payment of £20 million relating to its US exit, while another £10 million payment was attributed to its Winner acquisition.  

The operator said cash outflow was driven by exceptional costs as it executed the turnaround and transformation of the business. Net debt increased by 0.5% year-on-year by the end of 2024.