Evoke, the parent company of William Hill, 888, and Mr Green, has reported revenue growth for the first time in three years, with a 3% year-over-year increase in fiscal 2024, reaching 1.75 billion GBP (2.25 billion USD).
Online operations were the main driver of growth, with core markets growing by 12% in the second half of the year at constant exchange rates.
Thanks to strong performance in sports events in the fourth quarter, online business in the UK and Ireland grew by 5% in fiscal 2024, with a 10% increase in the second half alone.
International online revenue grew by 10% at constant exchange rates, with major non-UK markets growing by 25%. Core markets—UK, Italy, Spain, Denmark, and Romania—now account for about 90% of total revenue.
Cost optimization drives significant profitability improvement in the second half of the year
Adjusted EBITDA for fiscal 2024 grew by 4% to 312.5 million GBP, slightly above earlier expectations. The transformation was particularly evident in the second half of the year, with adjusted EBITDA increasing by 71% from the first half and by 33% year-over-year to 197 million GBP.
The profit margin expanded in the second half, raising the annual profit margin to 17.8%, with a second-half margin of 22.1%.
Cost-saving measures played a key role. A cost optimization plan worth 30 million GBP was implemented throughout the year, with an additional 15 million GBP realized in the second half.
These measures, along with improved marketing efficiency, laid the foundation for the company's return to profitability.
With enhanced segmentation and customer lifecycle management, ARPU grew by 6% in fiscal 2024.
Reported losses reflect one-time transformation costs
Despite operational improvements, Evoke reported a post-tax loss of 191.4 million GBP, higher than the 65.2 million GBP in 2023.
This was mainly due to a 79.3 million GBP special expense related to the exit from the US B2C business and transformation-related costs.
An increase in financial expenses and a shift from tax credits in 2023 to tax liabilities in 2024 also impacted the bottom line.
Reported EBITDA fell by 9% to 230.6 million GBP, while adjusted earnings per share dropped to a loss of 6.4 pence. However, adjusted financial figures exclude one-time costs, reflecting fundamental improvements in business fundamentals.
Strategic execution and focus on core markets
In May 2024, 888 was renamed Evoke, marking a broader cultural and strategic reset aimed at unifying the business under one identity and building long-term value.
Key milestones included the sale of Evoke's US B2C assets to Hard Rock Digital and the acquisition of Winner.ro, establishing Romania as its fifth largest core market.
Compared to the same period last year, retail revenue fell by 5%, but a nationwide upgrade of gaming cabinets was completed in the first quarter of 2025.
Product updates included improved Bet Builder and new William Hill horse racing features, supporting user engagement, while the repositioned Danish Mr Green brand achieved 24% growth.
2025 Outlook: Higher profit margins, reduced debt
Looking ahead, Evoke expects revenue to grow by 5% to 9% in fiscal 2025, with an adjusted EBITDA profit margin of at least 20%.
Despite regulatory adjustments and the leap year effect, growth in the first quarter is expected to be in the low single digits, but adjusted EBITDA is projected to increase by 18 to 28 million GBP compared to the first quarter of 2024.
The group continues to set targets to save an additional 15 to 25 million GBP in costs by 2025 to offset the expected regulatory headwinds from increases in UK National Insurance and living wages.
In the second half of 2024, the leverage ratio decreased from 6.7 to 5.7, and Evoke plans to further reduce it to below 5.0 by the end of 2025 and eventually to 3.5 by 2027.
CEO Per Widerström stated that the group is currently "focused on" its core markets and is building long-term competitive advantages through data, automation, and improved product lines.
