evoke Revenue Rises, Strategic Review Ongoing

evoke Plc (LSE: EVOK), a prominent betting and gaming company, announced a slight revenue increase for FY25 amidst a strategic review prompted by significant UK tax increases. The company's post-close trading update reveals a mixed performance, with revenue growth tempered by challenging market conditions.

Revenue for FY25 is expected to reach approximately £1,786 million, a modest 2% increase year-over-year. This growth was partially offset by a 3% year-over-year decline in Q4 revenue, which landed at £464 million, although this represented the strongest quarter of the year, up 7% quarter-over-quarter. The dip in Q4 is attributed to a strong comparative period in the prior year with favorable sporting results for operators.

Adjusted EBITDA is projected to be in the range of £355-360 million, marking a 14-15% increase year-over-year and aligning with market expectations. This translates to an Adjusted EBITDA Margin of approximately 20%, consistent with previous guidance.

The focus on profitable growth and successful cost-saving measures throughout the year contributed to this improvement. The company has stated that these cost-saving measures have been implemented to mitigate the UK tax increases.

The Board is currently undertaking a strategic review to maximize shareholder value, considering options such as a potential sale of the Group or its assets. Due to this ongoing review, the company has refrained from providing forward-looking financial guidance.

Driver Breakdown:

• Gaming Growth: A 9% year-over-year increase in gaming revenue, with contributions from all divisions.
• Retail Performance: A 10% year-over-year increase in Retail revenue, demonstrating continued strength in brick-and-mortar operations.
• International Expansion: A 14% year-over-year increase in International revenue, highlighting successful expansion in key markets.

Per Widerström, CEO of evoke, commented, “During Q4 we made good progress against our strategic plans, delivering our best quarter of the year and demonstrating the underlying momentum in the business. Our focus on core markets continued to drive our profitable growth, with Italy and Denmark both delivering record quarterly revenues in Q4. This positive momentum has continued into 2026 with a strong start to the year with good growth across all divisions.”

Widerström also stated the company was “very disappointed with the outcome of the UK Budget in November that dealt a significant blow to both evoke and the wider regulated industry.” He is concerned that tax increases “will negatively impact the industry's economic contribution, customer protection, and will ultimately serve to support further growth in the illegal black market.”