Evoke announced a 3% increase in revenue for the third quarter of 2024, reaching 417 million pounds (544 million dollars). This marks the company's first year-over-year revenue growth since the first quarter of 2022.
The overall performance was primarily due to strong growth in core international markets, with international revenue increasing by 14%, including a 26% revenue growth in key regions such as Italy and Spain.
Italy, in particular, showed strong performance, with revenue growth of 31% at constant exchange rates, where Evoke's 888casino brand has taken a leading position in the online casino market.
Meanwhile, the company's online business revenue grew by 8%, with core markets like Romania growing by 11%, following the acquisition of Winner.ro earlier this year, making Romania a focal point for Evoke.
However, Evoke's UK division faced challenges, as unfavorable football match results in September led to a 13% decline in sports betting revenue, impacting the group's revenue by 10 million pounds.
The overall revenue of the online business in the UK and Ireland grew by 3%, with gambling revenue increasing by 12%, partially offsetting the decline in betting revenue.
Good news: Evoke completed the acquisition of Winner.ro in early October, further consolidating its position in Romania, now the company's fifth largest core market. The integration is expected to bring cost and revenue synergies in the coming months.
Retail business revenue also declined by 9%, mainly due to a lower than expected net profit margin and loss of market share in gaming.
The newly appointed retail general manager has begun taking measures to address these issues, planning to launch 5,000 new gaming machines by the first quarter of 2025.
The company reiterated its expectations for the second half of 2024, maintaining a revenue growth target of 5-9% and an adjusted EBITDA profit margin of about 21%.
