Evoke (EVOK) H1 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of revenue growth, with H1 2025 revenue up 3% year-over-year to £887.8m, driven by strong international performance and retail recovery.

• Adjusted EBITDA rose 44% year-over-year to £166m, reflecting operational efficiency, cost savings, and improved marketing returns.

• Significant deleveraging, with leverage reduced to 5.0x from 6.7x a year ago, and a target below 3.5x by 2027.

• International segment led growth with revenue up 13% and Adjusted EBITDA more than doubling; UK & I Online revenue declined 1% but profitability improved, and Retail returned to growth in Q2 after new gaming machine rollout.

• Enhanced gross margin, improved marketing efficiency, and a more efficient operating model contributed to profitability.

Financial highlights

• H1 2025 revenue grew 3% year-over-year to £887.8m; constant currency revenue up 4%.

• Adjusted EBITDA up 44% to £166m; margin improved to 18.7% from 13.4% in H1 2024.

• International segment revenue up 13% to £299.4m; Adjusted EBITDA up 111% to £85.6m.

• UK & I Online revenue down 1% to £336.2m, but Adjusted EBITDA up 37% to £60.0m.

• Retail revenue down 2% to £252.2m; Adjusted EBITDA down 22% to £29.6m, but Q2 saw gaming growth after rollout of 5,000 new machines.

Outlook and guidance

• FY 2025 guidance reiterated: 5-9% revenue growth and at least 20% Adjusted EBITDA margin.

• Medium-term targets: 5-9% annual revenue growth, ~100bps EBITDA margin expansion per year, and leverage below 3.5x by end of 2027.

• H2 2025 expected to see further profitability gains, supported by new product launches and operational initiatives.

• Capex for FY25 expected at £100-110m, with interest costs of £175-180m.