Evoke H1 EBITDA jumps 44pc, pre-tax losses halve

(Sharecast News) - Betting and gaming group Evoke reported an improved first-half performance on Wednesday, with profitability and margin expansion helping offset modest top-line growth. Evoke said adjusted underlying earnings had jumped 44% year-on-year to £166m, driven by higher gross margins and reduced marketing spend, while reported EBITDA more than tripled to £141.3m, reflecting fewer exceptional costs linked to its US B2C exit in FY24 and transformation charges. Losses after tax improved by 55% to £64.7m, narrowing from £143.2m a year earlier.

Evoke said group revenues rose 3% to £887.8m, with international markets up 13% to £429.2m and UK&I online down 1% to £313.3m, impacted by tough comparatives and a shift in marketing strategy. Retail revenue dipped 2% to £145.3m but returned to growth in Q2.

Evoke, formerly known as 888 Holdings, also said it had made headway on deleveraging, cutting its net debt to EBITDA ratio by 1.7x to 5.0x.

CEO Per Widerström said: "Having delivered four consecutive quarters of growth, we are well positioned to drive continued progress, supported by our leading market positions, established brands, outstanding products, and a clear customer proposition.

"The acceleration in Q2 performance, together with a strong pipeline of product enhancements and operational efficiency initiatives, underpins our confidence of improved growth in H2 and reiterated guidance of 5-9% revenue growth and an Adjusted EBITDA margin of at least 20% in 2025, as we continue to execute against our plans to create significant shareholder value."

As of 0855 BST, Evoke shares were up 4.96% at 65.39p.

Reporting by Iain Gilbert at Sharecast.com