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Highlights

  • Profitability Surge: H2 Adjusted EBITDA grew 33% year-over-year, reaching £197m, with a full-year margin of 17.8%.

  • Revenue Growth: Group revenue rose by 3%, marking the first return to growth in three years, driven by online performance.

  • Optimized Cost Structure: Additional £15-25m in cost savings identified for 2025, offsetting expected £10m headwinds.

Evoke (LSE:EVOK), a leading global betting and gaming company with brands such as William Hill, 888, and Mr Green, has announced its preliminary unaudited financial results for the year ending 31 December 2024. The company achieved its H1 commitments, delivering a substantial increase in profitability in the second half of the year. H2 Adjusted EBITDA surged by 33% year-over-year to £197m, with a 71% increase compared to H1, driven by revenue growth, cost efficiency, and operational improvements.

For the full year, Evoke reported an Adjusted EBITDA of £312.5m, a 4% rise from 2023, exceeding the top end of its January 2025 post-close trading update guidance. The company's EBITDA margin for 2024 stood at 17.8%, with H2 reaching 22.1%, demonstrating improved operational efficiency.

Business Transformation and Revenue Growth

Evoke successfully returned to revenue growth for the first time in three years, with total group revenue increasing by 3% (4% in constant currency). The online segment played a key role in this rebound, with H2 revenue rising 8% year-over-year. Core markets saw a 6% increase (12% in online), now contributing approximately 90% of total group revenue.

Despite the positive performance, reported EBITDA was affected by £79.3m in exceptional costs, primarily linked to the company’s exit from the US B2C market and ongoing integration and transformation efforts. The reported loss after tax increased due to these factors, higher finance expenses, and a tax charge in 2024 compared to a tax credit in 2023.

Q1 2025 Trading and Outlook

Evoke has had a steady start to 2025, with Q1 revenue expected to show low single-digit growth year-over-year. However, the company remains on track to meet its full-year target of 5-9% revenue growth. Several short-term factors have influenced Q1 performance, including:

  • The introduction of new safer gambling measures in UK Online, which initially impacted customer journeys but is expected to be offset by product and experience enhancements from Q2 onwards.

  • Comparisons against high marketing and promotional spending in Q1 2024, which, while less effective than planned, contributed to revenue in the prior year.

  • Operator-favorable sports results in Q4 2024 and racing cancellations in January 2025, affecting betting volumes.

  • The extra trading day in Q1 2024 due to the leap year, which accounts for an estimated 1% revenue difference.

Despite these factors, Q1 Adjusted EBITDA is expected to grow by £18m-28m compared to Q1 2024, bringing the last twelve months (LTM) Adjusted EBITDA to £330-340m. This reflects improved marketing efficiency and a streamlined operational model following the company's cost optimization program.

2025 Strategic Focus

Evoke continues to prioritize efficiency, identifying an additional £15-25m in cost savings for 2025, which will more than offset expected cost pressures from National Insurance and National Living Wage increases in the UK (estimated at £10m).

The company has reaffirmed its full-year expectations, with the Board maintaining confidence in achieving 5-9% revenue growth and an Adjusted EBITDA margin of at least 20% in 2025.