Evoke PLC on Thursday reported weaker first half performance but said it is on track to meet full year guidance with its transformative actions yielding benefits.
The Gibraltar-based betting and gaming company, formerly known as 888 Holdings, is the owner of brands including William Hill, 888, and Mr Green.
Pretax loss widened to £147.0 million in the half year that ended June 30 from £45.2 million a year previous.
Revenue fell 2.2% to £862.0 million from £881.6 million, while cost of sales rose 2.7% to £301.8 million from £294.0.
The decline in revenue was primarily driven by UK Retail revenue falling 7.5%, with UK & Ireland Online up 0.8% and International broadly flat.
Widening the loss, Evoke also incurred exceptional items totalling £70.8 million and increased marketing expenditure by 12% to £154.2 million from £138.2 million.
Chief Executive Officer Per Widerstrom said: ‘The first half was disappointing and behind our initial plan...we are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid and long-term profitable growth and value creation.
‘We have already taken bold, decisive actions to both instigate a turnaround in short-term trading performance while simultaneously investing into the group’s capabilities to drive step-change value creation and build a bigger, more profitable, more sustainable, and more cash generative business in the future.’
Evoke said revenue in the second half is forecast to be in-line with its medium-term target of 5% to 9% revenue growth.
The adjusted earnings before interest, tax, depreciation, and amortisation margin is expected to improve to approximately 21% in the second half from 13% reported for the first six months.
‘This will be driven by the full period benefit of the £30 million cost saving programme, more effective marketing that is focused on our core customers and enhanced product,’ Evoke said.
Evoke shares were up 1.6% to 55.60 pence each in London on Thursday afternoon.
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