Evoke Group Faces Mixed 2025 Results as UK Duty Hikes and Black Market Pressure Hit Revenues

Evoke ended 2025 with results that showed both progress and setbacks. The company grew revenue slightly to £1.78 billion, while adjusted EBITDA rose 14% to £356 million, showing stronger profitability and tighter cost control.

But heavy impairment charges linked to new UK duty rules and weak retail trading pushed the group into a reported after‑tax loss of £549 million. UK&I online revenues fell 3%, hit by black market activity and weaker sports betting, though William Hill’s gaming arm delivered growth.

International markets performed better, with Italy and Denmark reaching record highs and Romania boosted by the Winner acquisition. CEO Per Widerström summed up the year by saying:

“Throughout 2025 we delivered consistent operational progress resulting in a more efficient, focused and disciplined business… However, the significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market.”

Profitability gains but losses from UK duties

Evoke’s adjusted numbers showed clear progress in 2025. EBITDA rose 14% to £356 million, with margins expanding to 20% thanks to tighter marketing spend and stronger cost control.

Reported EBITDA jumped 43% as exceptional costs fell compared to the prior year. But the headline figure was overshadowed by £440 million in impairment charges across UK Online and Retail, reflecting the impact of new duty rates and weak high street trading.

This pushed the group into a reported after‑tax loss of £549 million. Widerström explained the company’s response, stating, “We have acted decisively to mitigate the impact of these changes and protect long-term shareholder value, including initiating a strategic review and implementing significant operational actions across the business.”

Meanwhile, the UK&I online division struggled in 2025, with revenues down 3%. William Hill’s gaming arm delivered growth, but this was offset by declines at 888, which deliberately focused on profitability rather than chasing volume.

Sports betting was hit hard by black market penetration, especially in horse racing, and by tough comparisons with operator‑friendly results in 2024. International markets told a different story. Online revenues rose 9%, with core markets up 17% year‑over‑year. Italy and Denmark reached record highs, while Romania benefited from the Winner acquisition.

The exit from US B2C weighed slightly, but overall international growth was strong and profitable. Widerström stressed that international expansion is now a key pillar of resilience, helping to reduce reliance on the UK market.

Retail revenues dip 1%

Retail revenues dipped 1% in 2025, mainly due to sports, though gaming rose 5% after the rollout of 5,000 new machines across the estate. Despite this, Evoke faced tough high street conditions and inflationary pressures, prompting a detailed review of its retail footprint.

The company announced the closure of around 270 shops that were no longer sustainable, aiming to improve long‑term profitability and protect the business against rising costs. These closures followed earlier cuts in Q4 2025 and will continue into 2026.

Strategic review and possible sale to Bally’s

The sharp increase in UK duties announced in November 2025, raising Remote Gaming Duty from 21% to 40% from April 2026 and introducing a new sports betting duty in 2027, forced Evoke to launch a strategic review.

The board is considering options to maximize shareholder value, including a possible sale of the group. Talks with Bally’s Intralot S.A. about a potential offer remain ongoing, though no firm deal has been confirmed.

Widerström emphasized the company’s focus, stating, “While the trading environment is challenging, we remain firmly focused on delivering profitable growth, cash generation and strengthening the balance sheet.”

Evoke entered 2026 with Q1 revenue growth of 2% and stronger UK online performance, showing some momentum despite the headwinds. The group says it will continue to invest in AI‑driven automation and international expansion, aiming to balance regulatory pressures in the UK with growth abroad. The strategic review will shape the company’s next chapter.

Evoke Group Faces Mixed 2025 Results as UK Duty Hikes and Black Market Pressure Hit Revenues

Profitability gains but losses from UK duties

Retail revenues dip 1%

Strategic review and possible sale to Bally’s

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