- First-half revenue up 3%
- EBITDA growth of 44%
- Full-year target reiterated
William Hill and 888 owner Evoke (EVOK) pleased markets after reporting a fourth consecutive quarter of revenue growth and a big jump in profitability, sending the shares up 4% to 65p.
The shares have gained 7% so far in 2025, lagging the 10% advance in the FTSE All-Share index.
Chief executive Per Widerström commented: ‘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% to 9% revenue growth and an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) margin of at least 20% in 2025, as we continue to execute against our plans to create significant shareholder value.’
INTERNATIONAL GROWTH
The standout performance came from the international operations, which now contribute half of EBITDA and where revenue grew 15% in constant currencies with the core markets of Italy, Denmark, Romania and Spain chipping in 22% growth.
Revenue in the UK & Ireland slipped 1%, reflecting tough comparatives from the UEFA European Championship competition in 2024, although profitability significantly improved with adjusted EBITDA up 37% to £60 million.
Group adjusted EBITDA was up 44% to £166 million reflecting higher, more effective marketing and operational efficiencies.
Strong cash generation reduced the group’s leverage as net debt to EBITDA fell to five times from 6.7 times, and the company ended the half with cash excluding customer balances of £121 million.
Management said current trading was in line with expectations and further improvements in profitability were expected during the second half.
ANALYST UPGRADES
Analysts Ivor Jones and Douglas Jack at Peel Hunt saw scope to increase their earnings forecasts, saying: ‘Evoke’s last 12-month adjusted EBITDA was £363 million (£166 million in 1H25, up 44% YoY), which makes our FY25E forecast of £359 million seem rather miserly.’
Likewise, analysts at Deutsche Bank increased their 2025 EBITDA forecast by 3% to £367 million, while Jefferies noted taking the bottom of the revenue growth guidance range (5%) at a 20% margin implied EBITDA of £368 million, which is 3% ahead of current consensus.
