28th Oct 2025 12:00
(Alliance News) - Evoke PLC on Tuesday said it expects to report adjusted earnings ahead of expectations, after a strong third quarter which was boosted by growth in its international business and sports betting.
The Gibraltar-based betting and gaming operator and owner of the William Hill and 888 brands said revenue rose 4.3% to GBP435 million in the third quarter from GBP417 million a year ago, or by 4% in constant currency.
Evoke said the fifth consecutive quarter of year-over-year revenue growth was supported by a return to growth in Retail resulting in all three operating divisions growing during the quarter.
UK & Ireland reported 1% revenue growth, with growth in sports of 8% offset by gaming, down 2%.
In International, revenue increased by 8%, or 6% at constant currency, driven by strong double-digit growth in Italy, Denmark and Romania, but offset by a slowdown in Spain and a decline in non-core markets.
Retail revenue climbed by 6%, supported by sports betting growth helped by weaker prior year win margins, and continued strong performance in gaming.
Chief Executive Officer Per Widerstrom was pleased to have recorded a fifth consecutive quarter of profitable growth.
"We continue to execute our turnaround with vigour and are making good progress against our plans to position evoke for long-term success and significant value creation," the CEO added.
Evoke reiterated full-year 2025 guidance of achieving adjusted earnings before interest, tax, depreciation and amortisation margin of at least 20%, giving it "confidence" in delivering adjusted Ebitda ahead of current market expectations.
Evoke put market consensus for adjusted Ebitda at GBP362 million, would be growth of 16% from GBP312.5 million in 2024.
The adjusted Ebitda margin in 2024 was 17.8%.
Evoke also reiterated its medium-term financial targets of 5% to 9% annual revenue growth, around 100 basis points of adjusted Ebitda margin expansion per year, and leverage below 3.5 times by the end of 2027.
Shares in Evoke, which had traded as high as 47.82 pence, were down 1.9% at 40.80p each approaching Tuesday lunchtime in London. The firm has a market capitalisation of GBP189.8 million.
The sector continues to held back by speculation of increases in gambling duties in November's budget.
Shares in Evoke have fallen from around 70p per share in August since reports first emerged that the sector could be a target for the chancellor.
"We hope HM Treasury will want not to decrease tax revenue and will leave the sector alone, but downside risks are material," analysts at Peel Hunt commented.
By Jeremy Cutler, Alliance News reporter
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