UK's Evoke H1 adjusted EBITDA down on higher gaming duties
UK's Evoke H1 adjusted EBITDA down on higher gaming duties
Overview
UK betting and gaming firm's H1 revenue was flat, with 2% like-for-like growth
Adjusted EBITDA fell 10% yr/yr, mainly due to higher gaming duties
Recommended acquisition by Ballys Intralot remains on track for late 2026 or early 2027
Outlook
Company says trading since period end has remained in line with management expectations
Evoke is not providing forward-looking financial guidance due to the recommended acquisition by Bally's Intralot
Result Drivers
HIGHER GAMING DUTIES - Co said increased gaming duties, especially in the UK, drove up costs and reduced profitability
MITIGATION ACTIONS - Co offset over half of increased duty costs through lower but more effective marketing, improved promotional efficiency and operational cost savings
UK ONLINE GROWTH - UK&I Online Adjusted EBITDA rose 28% yr/yr, helped by strong William Hill gaming performance and focus on marketing efficiency
Company press release: ID:nRSL2704Qa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 887.50 mln |
|
H1 Adjusted EBITDA |
| GBP 150.20 mln |
|
H1 Adjusted Pretax Profit |
| GBP 700,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy"
Wall Street's median 12-month price target for Evoke PLC is GBp52.00, about 14.3% above its August 11 closing price of GBp45.50
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)