Gambling operator Evoke announced its third-quarter financial results, with group revenue increasing by 5% year-on-year to 435.4 million pounds, achieving growth for the fifth consecutive quarter. The UK and Ireland's online business revenue slightly increased by 1%, retail business grew by 6%, and international business became the main driving force with an 8% growth rate. The company reiterated its target of 5%-9% annual growth before 2027 and expects the adjusted EBITDA profit margin to exceed 20%. Despite facing potential tax increase risks in the UK, Evoke continues to advance its transformation strategy through product optimization and cost control.
Third Quarter Performance
Evoke's third-quarter group revenue reached 435.4 million pounds (approximately 580.7 million USD), a 5% increase from the same period last year, maintaining year-on-year growth for the fifth consecutive quarter. All three core business segments achieved revenue increases, reversing the situation in the first half of the year where only international business grew. CEO Per Widerström pointed out that the company is advancing its strategic transformation by improving operational efficiency and profitability, with adjusted EBITDA for this quarter expected to exceed market expectations.
Regional Market Performance Analysis
The UK and Ireland's online business revenue was 163.3 million pounds, a 1% increase year-on-year, with gambling revenue increasing by 8% to 50.7 million pounds, and gaming revenue decreasing by 2% to 112.6 million pounds. UK retail revenue increased by 6% to 121.7 million pounds, benefiting from improved sports betting odds and new gaming machine deployments. International business revenue increased by 8% to 150.4 million pounds, with gaming revenue growth of 13% dominating, achieving double-digit growth in markets like Italy, Denmark, and Romania, but with slower growth in places like Spain.
Strategic Goals and Risk Factors
Evoke maintains its mid-term target of 5%-9% annual revenue growth and approximately 1% annual improvement in EBITDA profit margin before 2027. The company supports growth through product upgrades (such as the William Hill Vegas app) and customer lifecycle management, but the potential for higher gambling taxes in the UK poses a challenge. Reports suggest that the tax increase could lead to the closure of 15% of Evoke's stores in the UK (about 120-200 stores), affecting 1,500 positions. The company did not comment on tax issues in the financial report but stated it is assessing potential impacts.
Management and Future Outlook
Recently, Mark Summerfield took over as non-executive chairman, with Lord Jonathan Mendelsohn stepping down. Evoke emphasizes confidence in achieving performance guidance through operational model optimization and cost efficiency improvements. International business continues to expand, with platform migration and localization upgrades completed in Denmark, Romania, and other locations. The company expects fourth-quarter growth to benefit from product improvements, with a long-term focus on value creation and sustainable transformation.
