Evoke (EVOK) Trading Update summary

Financial performance

• Q3 2024 group revenue reached £417m, up 3% year-over-year and 4% in constant currency, marking the first quarter of growth since Q1 2022, driven by market share gains in key international markets.

• Online revenue grew 8%, with 11% growth in core markets, now comprising nearly 85% of online revenues; international online revenue rose 14% (17% cc), led by strong performance in Italy, Spain, Denmark, and Romania.

• UK & I Online revenue increased 3%, with gaming up 12% but betting down 13% due to customer-friendly sports results, impacting revenue by about £10m.

• Retail revenue declined 9%, reflecting weaker betting margins and market share losses in gaming; new retail MD has initiated measures to improve trading and is rolling out 5,000+ new gaming machines.

• No change to H2 2024 guidance: revenue growth expected at 5-9% and adjusted EBITDA margin to improve to approximately 21%.

Strategic and operational highlights

• Focus on core markets delivered strong results, with Italy revenue up 31% cc and 888casino achieving a leading position in the Italian casino-first segment.

• Major product launches, including Bet Builder, Impact Sub, and a new William Hill Vegas app, enhanced customer experience and engagement.

• Improved player bonus and promotion strategies, with a new customer engagement platform enabling greater personalization.

• Brand strength reinforced by William Hill's top pricing on horse racing and new football season promotions.

• Average Revenue Per User (ARPU) increased 8%, driven by focus on core customer cohorts and retention.

Profitability, efficiency, and capital allocation

• Marketing costs reduced sequentially while maintaining strong online revenue growth, supported by a new marketing mix model for agile channel optimization.

• £23m in cash cost savings year-to-date achieved through a streamlined operating model, reducing business layers and office footprint.

• Expanded Manila operations to support further business process outsourcing and automation.

• Operations 2.0 initiative accelerating automation and AI investments across all functions.

• Acquisition of winner.ro completed, establishing a leading position in Romania and targeting cost and revenue synergies with a dual-brand strategy.