evoke reported retail growth in Q3 2025, but upcoming tax measures from the UK government could threaten the recovery of this segment.
Positive momentum was driven by the rollout of new gaming machines. However, optimism for the operator of William Hill, 888 and Mr Green may prove premature. The Labour government is expected to present its updated budget in November, which is set to include tax changes.
The company has already warned that proposed tax measures could force the closure of between 120 and 200 William Hill betting shops, putting up to 1,500 jobs at risk. This would be especially damaging given recent investments and the current strength of the retail business.
Yet, when reflecting on the period ahead, CEO Per Widerström was positive and avoided that speculation.
“We have clear plans in place to support an improvement in revenue during Q4 through continued acceleration in product enhancements, including retail sports and our recently launched new William Hill Vegas app,” stated Widerström.
“We are also making ongoing improvements to our customer lifecycle management capabilities. Alongside this, the improvements we have made to the operating model and efficiencies in our cost base mean we remain confident of achieving our implied Adjusted EBITDA guidance, which would outperform market expectations.
“We continue to execute our turnaround with vigour and are making good progress against our plans to position evoke for long-term success and significant value creation.”
Like other UK operators, evoke is awaiting the government’s final tax decision before taking any action.
In Q3, evoke’s retail segment returned to growth: revenue rose 6% year-on-year to £54.6 million (Q3 2024: £51.5 million). Sports betting revenue increased by 6% to £67.1 million (2024: £63.1 million) due to a weaker prior-year win margin. Gaming revenue also rose 6% YoY to £54.6 million thanks to the integration of new gaming cabinets (2024: £51.5 million).
Group revenue increased by 5% YoY to £435 million (2024: £416.6 million) – the fifth consecutive quarter of annual growth – with revenue rising across all three business segments.
evoke emphasized that profit contribution is growing faster than revenue, as the operator focuses on sustainable and profitable growth and improved marketing efficiency.
UK and Ireland online revenue grew just 1% YoY to £163.3 million (2024: £162.4 million): an 8% increase in stakes was partially offset by a 2% decline in gaming revenue. The company noted that 888’s performance continues to constrain growth due to reduced marketing aimed at higher returns. However, contribution from both brands grew at a double-digit rate.
During the reporting period, evoke launched the free-to-play Final One Standing game, an omnichannel Acca Boost product, improved Bet Builder functionality, and introduced the new William Hill Vegas app – strengthening player engagement and user experience.
International revenue rose 8% YoY to £150.4 million (2024: £139.7 million), driven by double-digit growth in Italy, Denmark, and Romania, although results in Spain and smaller markets declined.
Migration of 888 Romania to the local Winner platform has been completed. Updates to the proprietary platform are ongoing in Denmark. In Italy, the company is gaining casino market share, while sports betting growth is supported by the Exalogic platform.
Widerström noted: “During Q3, we continued to execute against our strategy, which is transforming our long-term competitive capabilities and building a more efficient and profitable business.
“With Retail continuing the improving trend from Q2, all three divisions were in growth during the quarter. Whilst our refined approach to UK Online marketing to drive improved profitability slightly held back our top-line performance, we are pleased to have recorded our fifth consecutive quarter of profitable growth.”
evoke continues to advance its profitability strategy and improve operational efficiency. The company reaffirmed its 2025 outlook: achieving at least a 20% adjusted EBITDA margin and an EBITDA result above current market expectations.
Medium-term targets remain unchanged:
- annual revenue growth of 5–9%;
- EBITDA margin expansion of roughly 100 bps per year;
- reduced leverage below 3.5× by the end of 2027.
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