Evoke H1 Earnings Call Highlights

First-half revenue was resilient, but profitability declined: Group revenue was £888 million, up 2% like-for-like, while adjusted EBITDA fell 10% to £150 million as higher gaming duties created a £46 million cost headwind. Mitigation measures offset more than half of the impact. U.K. operations improved despite duty pressure: U.K. and Ireland online revenue rose 4% and adjusted EBITDA increased 28%, while retail EBITDA grew 5% after closing 270 loss-making shops. International performance was mixed, with growth in Italy and Denmark offset by declines elsewhere. The Bally’s Intralot acquisition remains on track: The transaction is subject to shareholder and regulatory approvals, including an Aug. 17 vote, with completion expected in the fourth quarter of 2026 or the first quarter of 2027. Evoke generated £85 million in free cash flow, but leverage rose to 5.6 times due to lower EBITDA and one-off outflows.

Evoke LON: EVOK reported stable first-half revenue and lower adjusted EBITDA as increased gaming duties, particularly in the U.K., added a £46 million year-on-year cost headwind. Management said mitigation efforts, including more efficient marketing, cost savings and retail estate changes, offset more than half of the impact during the period. Group revenue was £888 million, stable on a reported basis and up 2% on a like-for-like basis after accounting for 270 store closures compared with the prior year. Adjusted EBITDA fell 10% to £150 million, down £16 million year over year.

Per Widerström said the results demonstrated the resilience of the business in a “materially more challenging external environment,” while the company continued to focus on commercial efficiency, cost discipline, cash generation and operational execution.

Acquisition process remains on track Widerström said Evoke’s board had recommended an acquisition by Bally’s Intralot following a strategic review initiated after the U.K. duty changes announced in November 2025. The board concluded that the proposal was the most attractive and deliverable option available to the company and its shareholders, he said. The transaction remains subject to shareholder, regulatory and other approvals, including Evoke’s shareholder vote scheduled for Aug. 17. Widerström said relevant filings were progressing according to plan and the company still expected completion in the fourth quarter of 2026 or the first quarter of 2027. Because of the pending transaction, management did not provide financial guidance and said it would not discuss transaction details beyond previously published documents.

U.K. online and retail offset duty pressure Total online revenue increased 1% in the first half. U.K. and Ireland online revenue rose 4%, with gaming revenue up 7%, led by the William Hill brand. CFO Sean Wilkins said William Hill Vegas continued to post double-digit growth, supported by changes in marketing, promotions and customer value. U.K. and Ireland online adjusted EBITDA increased 28%, or £17 million year over year, despite higher gaming duties. Wilkins said the improvement reflected revenue growth, operating leverage, reduced but more productive marketing investment, promotional efficiency and lower operating costs. “This has not just been a cost-cutting exercise,” Wilkins said, pointing to the segment’s 4% revenue growth alongside lower marketing spending. Retail revenue declined 3% on a reported basis because of the smaller shop estate, but grew 4% on a like-for-like basis. Retail adjusted EBITDA increased 5% despite wage and other cost inflation. The company closed 70 loss-making shops in the fourth quarter of the prior year and a further 200 during the first quarter of 2026. Wilkins said