Evoke Reports FY25 Results as EBITDA Reaches £356.2m Under CEO Per Widerström
Evoke PLC has reported FY25 results showing a shift toward improved profitability, with adjusted EBITDA rising 14% to £356.2m under CEO Per Widerström. Revenue reached £1,781.9m (+2% YoY), reflecting modest growth despite continued pressure in the UK market.
The company noted that Q4 was its strongest revenue quarter despite tough comparatives, following five consecutive quarters of growth prior to the final quarter.
Profitability Improves as Evoke Expands Margins to 20%
Under Per Widerström, Evoke is increasingly focused on profitability and operational discipline. EBITDA margins expanded to 20.0%, up 220 basis points year-on-year.
Adjusted EBITDA rose to £356.2m, while reported EBITDA increased 43% to £301m, reflecting underlying operating improvements alongside cost efficiencies.
The improvement was driven by tighter cost controls, bonus optimisation and scaled deployment of AI-driven automation and operating efficiencies across the business. These measures supported margin expansion despite limited revenue growth, indicating a shift toward a more efficiency-led operating model.
International Growth Offsets Continued UK Online Decline
Performance across regions remained mixed.International online revenue grew, with particularly strong performance across core markets including Italy, Denmark and Romania, following earlier strategic realignment where Evoke streamlined its global footprint, including the exit of William Hill from multiple international markets.
In contrast, UK&I online revenue declined, primarily due to weaker sports betting volumes. However, gaming remained resilient and supported double-digit contribution margin improvement within the segment.
Retail revenue declined 1% overall, although gaming increased 5% following machine upgrades, indicating partial stabilisation within the retail estate.
UK Duty Changes Drive £440.3m Impairment and £549.1m Loss
Despite improved underlying profitability, Evoke reported a £549.1m loss after tax. This was primarily driven by £440.3m in non-cash impairments across its UK online and retail operations.
These impairments were linked to changes in the UK regulatory framework, including the increase in remote gaming duty from 21% to 40% effective April 2026. Further increases in sports betting duties, rising from 15% to 25%, are scheduled from 1 April 2027.
Leverage Improves as Evoke Plans at Least £50m Cost Mitigation
From a balance sheet perspective, Evoke reported net leverage of 5.2x, improved from 5.7x in the prior year. Available liquidity exceeded £200m, supported by £128m in cash excluding customer balances.
The company also confirmed that its refinancing arrangements have been extended through to 2031, strengthening its near-term financial position.
To offset regulatory pressures, Evoke outlined plans for at least £50m in mitigation from the first full year, including operational efficiencies and retail optimisation measures. This includes the planned closure of approximately 270 retail shops.
Strategic Review Underway as Evoke Confirms External Interest
Evoke remains in the middle of a strategic review initiated following the UK’s November 2025 budget. As part of this process, the company confirmed that discussions with third parties are ongoing.
This places Evoke within a broader consolidation trend across the iGaming sector, where scale and operational efficiency are becoming increasingly important under regulatory pressure.
Q1 2026 Trading Indicates Stabilisation in Core Markets
Evoke indicated early signs of stabilisation in Q1 2026, with like-for-like revenue showing modest growth, excluding retail closures.
UK online returned to growth during the period, while gaming continued to perform positively, supporting overall performance.
Operator Insight: Margin Focus Replaces Growth-Led Strategy
Evoke’s FY25 results reflect a broader shift across the iGaming industry, following its earlier turnaround from loss to profit in 2025, as operators increasingly prioritise profitability, efficiency and cost control over pure top-line growth.
Gaming continues to play a key role in supporting margins, while regulatory changes are reshaping how operators approach market exposure, particularly in the UK.
Outlook: Regulatory Pressure and Efficiency to Shape Strategy
Looking ahead, Evoke’s strategy under CEO Per Widerström remains centred on profitability, operational efficiency and navigating regulatory change.While international markets continue to provide growth opportunities, the UK will remain a key area of focus. The outcome of the ongoing strategic review will also play a significant role in shaping the company’s future direction.
Source : Evoke
