Evoke announced a revenue of 437 million pounds (581 million dollars) for the first quarter of 2025, a 1% increase year-over-year, consistent with previous expectations.
The group's overall adjusted EBITDA saw a significant increase from the first quarter of 2024, continuing the profit margin expansion trend formed in the second half of last year. As of April 22, revenue has grown by about 4% since the beginning of the year, with full-year expectations remaining unchanged.
This performance continues the recovery trajectory started in the 2024 fiscal year. At that time, Evoke's annual revenue grew by 3%, reaching 1.75 billion pounds, with adjusted EBITDA before interest, taxes, depreciation, and amortization (EBITDA) increasing by 71% in the second half of the year. Currently, the group reports that its adjusted EBITDA over the past 12 months has exceeded 330 million pounds.
International business drives revenue growth
International business performed outstandingly in the first quarter, with revenue growing by 11% year-over-year (14% growth on a constant currency basis). The growth was mainly due to strong performance in core markets, including significant growth in the Romanian market following the 2024 acquisition of Winner.ro.
As part of the platform integration strategy, 888 Romania began migrating to the localized Winner.ro infrastructure this quarter, a move expected to enhance product localization and customer engagement.
Other migration efforts have also progressed, with Mr Green's core markets (including Denmark) now fully migrated to the 888 platform. Meanwhile, William Hill's Italian branch has also been integrated into the Exalogic system to enhance localization ahead of the upcoming reauthorization.
UK and Ireland online impacted by safer gambling measures
Revenue from online operations in the UK and Ireland fell by 1% in the first quarter. While gaming revenue grew by 3%, sports business was weak, reflecting the impact of safer gambling controls and a reduction in promotional activities compared to the previous year.
The number of active players decreased by 21%, but the average revenue per user (ARPU) increased by 26%, reflecting improvements in lifecycle management and product enhancements.
The company indicated that transactions in sports and gaming showed an improving trend in April, suggesting a possible rebound in the second quarter.
Retail revenue declines, but gaming income grows sequentially
Retail revenue decreased by 6% from the first quarter of 2024, mainly due to reduced betting volumes and lower profit margins. However, gaming revenue remained stable year-over-year, growing by 6% sequentially from the fourth quarter of 2024.
The group completed the installation of 5,000 new gaming cabinets nationwide in mid-March, which has helped improve performance and expand market share. With the installation work across the entire retail estate now completed, performance is expected to further improve in the coming quarters.
Strategic updates and efficiency measures continue
Evoke reiterated its commitment to operational efficiency and announced additional cost savings of 15 to 25 million pounds in its 2024 fiscal year performance report. These measures were implemented following the successful implementation of a 30 million pound cost optimization plan in 2024, which played a key role in raising the EBITDA profit margin to 22.1% in the second half of the year.
The group's transformation strategy—including brand integration, strengthening segmentation, and focusing on product innovation—remains central to its long-term growth.
Profitability recovery in fiscal year 2024 lays the foundation for 2025
Evoke announced its fiscal year 2024 performance, with revenue returning to growth after three years of contraction. First-quarter revenue grew by 3%, and adjusted EBITDA reached 312.5 million pounds, benefiting from growth in international online business and strong performance in the second half of the year.
Despite a post-tax loss of 191.4 million pounds due to one-time transformation and exit costs, the report shows an improvement in underlying profits and a reduction in leverage from 6.7 times to 5.7 times. Further deleveraging remains a core target for the company in 2025.
