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- Evoke’s losses quadrupled to £143.2m in the six months to June.
- The group’s revenues were hit by tougher conditions at its UK bookmakers
Evoke’s losses soared in the first half of 2024 as the William Hill owner was hit by a slowdown in retail trading.
The gambling operator, formerly called 888 Holdings, revealed its losses quadrupled to £143.2m in the six months to June from £32.5m in the same period last year.
Although the London-based company’s revenue rose 3.9 percent from the previous quarter, it fell 2 percent to 862 million pounds year-on-year.
Bad result: Evoke’s losses soared in the first half of 2024 as the William Hill owner was hit by a slowdown in street trading
Evoke said this was largely due to tougher conditions at its UK betting shops as its gaming machines “fell behind the competition”.
Turnover was further affected by declining sales outside the group’s “core markets” and a drop in betting on sporting events, which Evoke said reflected the growing participation of recreational customers.
Its online revenue in the British Isles rose marginally but was below forecasts due to weaker-than-expected returns from the company’s additional marketing spending.
Evoke’s profitability was also hit by rising finance costs from its £1.95bn debt-financed takeover of William Hill two years ago.
Evoke CEO Per Widerström acknowledged that the company’s result was “disappointing and behind our initial plan” but said that “the underlying health of the business is getting stronger.”
“The corrective measures we have already taken give us even greater confidence that our strategic approach is sound and that we will achieve sustainable success.”
Evoke unveiled a new strategy in March that includes plans to shift focus to its core markets and cut costs by investing in AI and automation.
Widerstrom said: “While the scale of change is significant, we need to achieve profitable growth and value creation over the medium to long term.”
Evoke believes its £30m cost-saving programme, “more effective” marketing and improved products will deliver a “significant improvement” in profits during the second half of 2024.
Its results come a day after Paddy Power owner Flutter raised its full-year guidance following a very strong second-quarter performance.
Flutter’s revenue rose 22 per cent to £2.8 billion in the three months to June thanks to spectacular growth in the US and bets from punters. Indian Premier League and European Football Championships.
Evoke actions rose 4.7 percent to 57.3 pence in early trading on Thursday, although their value has fallen by around 48 percent in the past year.
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