evoke’s FY25 results are one of those updates where the headline depends on which line you read first. On the one hand, underlying trading improved nicely, with Adjusted EBITDA – a profit measure that strips out one-off and non-cash items – up 14% to £356.2 million. On the other, the group still reported a statutory loss after tax of £549.1 million, driven mainly by a hefty £440.3 million of non-cash impairment charges.
So what is this really saying? In plain English, the business did get better operationally in 2025, but the UK tax changes announced late in the year have forced management to admit that parts of the business are now worth less than previously thought. That matters because evoke is heavily exposed to the UK and already carries a lot of debt.
evoke FY25 results: key numbers from the RNS
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | £1,781.9 million | £1,754.5 million | +2% |
| Reported EBITDA | £301.3 million | £211.4 million | +43% |
| Adjusted EBITDA | £356.2 million | £312.5 million | +14% |
| Adjusted EBITDA margin | 20.0% | 17.8% | +220 basis points |
| Reported loss after tax | £549.1 million | £220.9 million | Worse |
| Adjusted profit after tax | £5.7 million | £39.2 million loss | Improved |
| Cash excluding customer balances | £128.4 million | £147.1 million | Down |
| Leverage | 5.2x | 5.7x | Improved |
Adjusted profit improved, but the statutory loss tells you the UK has become tougher
The positive angle is real. Revenue rose 2%, margins improved, marketing became more efficient, and management says this is the second consecutive year of profitable growth on an adjusted basis. That is not nothing. For a business that has spent the past couple of years trying to bed down William Hill, 888 and Mr Green, better discipline is exactly what you would want to see.
The catch is the £440.3 million impairment charge. An impairment is basically an accounting write-down – the company is saying some assets are not worth what they used to be. In evoke’s case, that includes £169.5 million against Retail and £270.8 million against UK&I Online.
That does not directly drain cash today, but it is still bad news. It is management admitting that the future profit outlook for those assets has deteriorated, mainly because of the UK duty hikes and weak high street conditions.
UK gambling duty increases are the big problem in this evoke RNS
This is the part investors really need to focus on. The UK Government announced that Remote Gaming Duty will rise from 21% to 40% from 1 April 2026. Then from 1 April 2027, a new online sports betting duty of 25% will apply to sports betting excluding horse racing, replacing the existing 15% General Betting Duty.
evoke had already said this would add around £125 million to £135 million of annualised duty costs before mitigation, with around £80 million hitting FY26. It now says the impact should be slightly lower than first estimated, mainly because it expects UK revenue to fall as black market growth bites. That is hardly a comforting reason.
Management still expects to mitigate about 50% of the impact in the first full year through supplier savings, operating efficiencies, lower marketing spend, retail store closures and customer proposition changes such as reduced bonusing. My view: that sounds sensible, but it also tells you this is now a defence game in the UK, not a growth story.
evoke strategic review and 50p per share approach: what it means
The board is running a strategic review to assess options to maximise shareholder value. That includes a potential sale of the group or assets, and on 20 April 2026 evoke confirmed discussions with Bally’s Intralot S.A. regarding a possible offer of 50 pence per share for the entire business.
There is an important health warning here. Discussions are ongoing, but there is no certainty that a firm offer will be made, and no certainty on terms. So yes, the 50p number matters, but no, investors should not treat it as money in the bank.
The fact a bidder is talking is a sign there is strategic value here. The fact evoke is having to review its options at the same time as wrestling with UK tax hikes and refinancing risk tells you why the board is listening.
evoke FY25 divisional performance: International strong, UK mixed, Retail under pressure
| Segment | Revenue FY25 | Change | Adjusted EBITDA FY25 | Change |
|---|---|---|---|---|
| UK Retail | £501.0 million | -1.0% | £55.0 million | -17.2% |
| UK&I Online | £674.0 million | -2.8% | £151.3 million | +6.0% |
| International | £606.9 million | +9.3% | £175.4 million | +34.9% |
International was clearly the bright spot. Revenue rose 9%, with strong growth in Italy, Denmark and Romania. Adjusted EBITDA jumped 34.9% to £175.4 million. That is exactly the diversification story evoke needs when the UK is turning into harder work.
UK&I Online was more mixed. Revenue fell 3%, but Adjusted EBITDA still rose 6% to £151.3 million because marketing got tighter and bonusing was reduced. That is encouraging from a profitability perspective, though less exciting if you want clean top-line growth.
Retail looks like the problem child. Revenue slipped 1% and Adjusted EBITDA fell 17.2% to £55.0 million. New gaming machines helped gaming revenue rise 5%, but fixed costs and weak high street trading conditions are still biting.
That is why evoke has decided to close around 270 shops in total, including 68 shut in Q4 2025 and a further c.200 due in Q2 2026. Painful, yes. Probably necessary, also yes.
Debt, liquidity and going concern risks are still hanging over evoke
There has been progress here, but not enough to relax. Net debt was £1,862.7 million at year end, up from £1,787.7 million, although leverage improved to 5.2x from 5.7x because EBITDA rose. Cash excluding customer balances stood at £128.4 million, with total liquidity of just over £200 million including £81 million of undrawn revolving credit facility.
The company refinanced debt in September 2025, issuing €600 million of 8.0% senior secured notes due 2031 and putting in place a new £200 million revolving credit facility. That buys some time. But the RNS is very clear that there are still material uncertainties around refinancing debt due in July 2028 and around the outcome of the strategic review.
That is the bit I would not gloss over. When a company says it has material uncertainties related to going concern, even while still preparing accounts on a going concern basis, that deserves respect. It does not mean failure is imminent, but it does mean the balance sheet is still a central part of the investment case.
Q1 2026 trading update: solid start, but no guidance
There is some encouragement in current trading. Q1 2026 revenue was in line with management expectations, up 2% like-for-like excluding retail closures and up 1% reported. UK Online was particularly good, up 5%, with gaming up 8% and William Hill performing strongly.
International was down 2%, which takes a bit of shine off the full-year International momentum. Retail was flat reported, but up 3% like-for-like, helped by the new gaming cabinets.
The board is not giving forward financial guidance because of the ongoing strategic review. Fair enough, but investors usually dislike uncertainty layered on top of uncertainty.
What evoke FY25 results mean for retail investors
- The good news: operationally, evoke improved in 2025. Margins got better, costs were controlled, and International is growing well.
- The bad news: the UK tax hit is serious, Retail is under pressure, and the asset write-down shows management expects a structurally tougher future.
- The big swing factor: the strategic review and possible 50 pence per share offer could reshape the story completely.
- The risk: debt is still high, and refinancing remains a real issue.
My take is this: evoke is not broken operationally, but it is trapped in an awkward spot where better execution is being overshadowed by a harsher UK market and a stretched balance sheet. If the UK duty hike had not landed, these would probably have been seen as a decent set of results. With the duty hike, they read more like evidence that management is improving the business just in time for the rules of the game to get tougher.
That makes the strategic review the main event now. Until investors know whether a firm offer emerges – or how evoke plans to handle the UK shock on a standalone basis – the shares are likely to trade more on corporate action and balance sheet thinking than on pure operating performance.
