REG - Evoke PLC - Q1 2025 trading update

EvokeAnnouncement

25/04/2025 07:00

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RNS Number : 1320G  Evoke PLC  25 April 2025

25 April 2025

 

evoke Plc

("evoke" or "the Group")

 

Q1 2025 trading update

 

Year-to-date Revenue growth +4% with no change to full year expectations. Q1
2025 in line with guidance with Revenue growth +1% and Adjusted EBITDA
significantly higher year-on-year

 

evoke (LSE: EVOK), one of the world's leading betting and gaming companies
with internationally renowned brands including William Hill, 888 and Mr Green,
today announces a trading update for the three months ended 31 March 2025
("Q1" or the "Period"). Further detail on the financial results by division is
included as an appendix to this announcement.

 

Financial highlights

 

 ·             Group: Revenue of £437m, representing growth of +1% (+2% cc(1)), in line with
               the guidance previously outlined at the FY24 Results on 26 March 2025. The
               Group continues to expect revenues to return to stronger year-on-year growth
               from Q2 2025 onwards, with full year 2025 revenue growth expected to be
               consistent with the mid-term target of 5-9% annual growth. As of 22 April
               2025, year-to-date revenue growth is approximately 4%.

 ·             In line with the Group's focus on sustainable, profitable growth, Q1 Adjusted
               EBITDA was significantly higher year-on-year, taking LTM Adjusted EBITDA to
               over £330m, in line with the guidance range outlined at the FY24 Results.

 ·             UK&I Online: Revenue -1% with continued growth in gaming (+3%) more than
               offset by reduced sports revenues with both impacted by the introduction of
               additional safer gambling measures, as previously outlined. Elevated
               promotional activity in the prior year led to reduced active players (-21%),
               while the Group's focus on profitable growth and progressive roll-out of
               improved product and customer management tools led to strong growth in ARPU
               (+26%).

 ·             International: Revenue +11% (+14% cc(1)) with continued double-digit growth
               driven by strong performances across Core Markets, including significant
               year-on-year growth in Romania following the acquisition of Winner.ro.

 ·             Retail: Revenues -6%, with gaming revenues broadly stable year-on-year and up
               6% sequentially vs. Q4 2024, offset by a decline in betting impacted by both
               stakes and a lower win margin year-on-year. The outlook for the remainder of
               the year is more positive with the roll-out of new machines completed together
               with the expected benefit of planned improvements across the sportsbook and
               overall in-store experience.

Strategic highlights

 

 ·             Completed the rollout of 5,000 new gaming cabinets into Retail in mid-March,
               driving a significant improvement in gaming revenue run-rates and market share
               gains in the period. Further improvements expected as the cabinets gain
               traction across the whole estate, with Retail gaming revenues now in growth in
               the year-to-date period.

 ·             All remaining Mr Green markets successfully migrated onto the 888 platform,
               including the core market of Denmark during the period, with an improved
               product offering now available to Mr Green customers.

 ·             William Hill Italy migrated onto the Exalogic platform to support improved
               localisation and strengthen the competitive capabilities ahead of re-licencing
               during 2025.

 ·             Commenced the migration of 888 Romania onto the localised Winner.ro platform
               during the period, which will unlock significant product enhancements and
               localisation for 888 customers.

 ·             Announced an additional £15-25m of cost efficiencies at the FY24 results, to
               be delivered in 2025.

Per Widerström, CEO of evoke, commented:

 

"The Q1 performance is consistent with the update provided at our full year
results, with improvements in April supporting revenue growth in the
year-to-date of approximately 4%. While Q1 revenue was below our 5-9% annual
growth target, Adjusted EBITDA is significantly higher year on year, with LTM
Adjusted EBITDA reaching more than £330m. This reflects the Group's
significantly more efficient operating model and our clear focus on creating
value through sustainable, profitable growth.

 

We are building momentum in the right areas of the business with particularly
strong growth across our International Core Markets. Whilst the UK&I
Online and Retail performance was behind where we wanted to be in Q1, we have
moved swiftly to improve some of the underlying drivers of the performance and
have been seeing stronger trends in April. With improved customer lifecycle
management, a clear customer value proposition, new retail gaming cabinets,
and an exciting product pipeline, we remain highly confident in our market
position and the growth profile of the business.

 

We are moving decisively and at pace to position evoke for long-term success
and to drive significant value, and I look forward to providing further
updates about our progress as the year progresses."

 

Notes

(1) Growth on a constant currency basis is calculated by translating both
current and prior year performance at the 2025 exchange rates

 

Enquiries and further information:

 evoke Plc                                       +44(0) 800 029 3050
 Per Widerström, CEO

 Sean Wilkins, CFO

 Vaughan Lewis, Chief Strategy Officer

 Investor Relations                              ir@evokeplc.com (mailto:ir@evokeplc.com)

 James Finney, Director of IR

 Media                                           evoke@hudsonsandler.com (mailto:evoke@hudsonsandler.com)
 Hudson Sandler                                  +44(0) 207 796 4133

 Alex Brennan / Hattie Dreyfus / Andy Richards

 

About evoke Plc:

 

evoke plc (and together with its subsidiaries, "evoke" or the "Group") is one
of the world's leading betting and gaming companies. The Group owns and
operates internationally renowned brands including William Hill, 888, and Mr
Green. Incorporated in Gibraltar, and headquartered and listed in London, the
Group operates from offices around the world.

 

The Group's vision is to make life more interesting and its mission is to
delight players with world-class betting and gaming experiences.

 

Find out more at: https://www.evokeplc.com (https://www.evokeplc.com)

 

Important Notices

 

This announcement may contain certain forward-looking statements, beliefs or
opinions, with respect to the financial condition, results of operations and
business of evoke. These statements, which contain the words "anticipate",
"believe", "intend", "estimate", "expect", "may", "will", "seek", "continue",
"aim", "target", "projected", "plan", "goal", "achieve", words of similar
meaning or other forward looking statements, reflect evoke's beliefs and
expectations and are based on numerous assumptions regarding evoke's present
and future business strategies and the environment evoke will operate in and
are subject to risks and uncertainties that may cause actual results to differ
materially. No representation is made that any of these statements or
forecasts will come to pass or that any forecast results will be achieved.
Forward-looking statements involve inherent known and unknown risks,
uncertainties and contingencies because they relate to events and depend on
circumstances that may or may not occur in the future and may cause the actual
results, performance or achievements of evoke to be materially different from
those expressed or implied by such forward looking statements. Many of these
risks and uncertainties relate to factors that are beyond evoke's ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behaviour of other market participants, the actions of
regulators and other factors such as evoke's ability to continue to obtain
financing to meet its liquidity needs, changes in the political, social and
regulatory framework in which evoke operates or in economic or technological
trends or conditions. Past performance of evoke cannot be relied on as a guide
to future performance. As a result, you are cautioned not to place undue
reliance on such forward-looking statements. The list above is not exhaustive
and there are other factors that may cause evoke's actual results to differ
materially from the forward-looking statements contained in this announcement.
Forward-looking statements speak only as of their date and evoke, its
respective parent and subsidiary undertakings, the subsidiary undertakings of
such parent undertakings, and any of such person's respective directors,
officers, employees, agents, affiliates or advisers expressly disclaim any
obligation to supplement, amend, update or revise any of the forward-looking
statements made herein, except where it would be required to do so under
applicable law. No statement in this announcement is intended as a profit
forecast or a profit estimate and no statement in this announcement should be
interpreted to mean that the financial performance of evoke for the current or
future financial years would necessarily match or exceed the historical
published for evoke.

Appendix: Divisional Summary

 

Q1 2025

 

                                   UK&I Online                                       Retail                                             International                                       Group

   Unaudited                       Q1                 Q1                 %           Q1                 Q1                 %            Q1                  Q1                  %           Q1              Q1              %
   £m                              2025               2024               Change      2025               2024               Change       2025                2024                Change      2025            2024            Change

   Average monthly actives (000s)      1,001               1,274         -21%                                                                   681                 561         +21%            1,682            1,835      -8%

   Sportsbook stakes                  538.6                630.6         -15%            367.3               393.5         -7%              262.1                327.3          -20%         1,168.0         1,351.5        -14%
   Sportsbook net revenue margin   10.6%              9.9%               0.7ppt      18.9%              19.3%              -0.4ppt      7.5%                6.2%                1.3ppt      12.5%           11.8%           0.8ppt

   Betting revenue                        57.0               62.5        -9%                69.5               76.0        -9%                 19.7                20.4         -3%             146.3            158.9      -8%
   Gaming revenue                      105.5               101.9         +3%                53.6              54.3         -1%              132.0                116.1          +14%             291.0           272.3      +7%
   Total revenue                       162.5               164.4         -1%              123.1              130.3         -6%               151.7               136.5          +11%             437.2           431.2      +1%

 

 

Note: Subtotals, totals, and percentage changes have been calculated based on
the underlying numbers. Any differences due to rounding.

 

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