Evoke PLC FY25 trading update: steady growth, stronger Q4, and a live strategic review
Evoke PLC (LSE: EVOK), owner of William Hill, 888 and Mr Green, has posted a measured 2025 finish with a better Q4 and a clear focus on profitability. The headline: FY25 revenue is expected to be approximately £1,786m, up 2% year-on-year, and Adjusted EBITDA is guided at £355-360m, around 14-15% higher year-on-year with a circa 20% margin – in line with market expectations and prior guidance.
Alongside the numbers, the board is running a strategic review that could include a sale of the group or parts of it. And in the background, the UK Budget’s betting tax increases are biting, prompting store closures and broader cost actions.
Key numbers at a glance
| Metric | Figure | Comment |
|---|---|---|
| Q4 revenue | Approximately £464m | Strongest quarter of the year |
| Q4 growth | +7% QoQ; -3% YoY (-4% constant currency) | Tough prior-year comparator in sports betting |
| Q4 gaming revenue | +9% YoY | Growth across all divisions; 888casino returned to growth in the UK |
| Q4 Retail | +10% YoY | Solid performance in shops despite sector headwinds |
| Q4 International | +14% YoY | Italy and Denmark hit record quarterly revenues |
| Q4 Betting revenue | -22% YoY | Prior year benefited from operator-friendly sports results |
| FY25 revenue | Approximately £1,786m | +2% YoY |
| FY25 Adjusted EBITDA | £355-360m | Approximately +14-15% YoY; margin circa 20% |
What’s driving the quarter: gaming strength offsets betting weakness
Q4 was the best quarter of the year by revenue, supported by broad-based growth in gaming. Notably, 888casino returned to growth in the UK – an encouraging sign given the recent regulatory and tax pressures. Retail and International also posted double-digit growth, with Italy and Denmark delivering record revenues.
The drag was in sports betting, down 22% year-on-year across the group. Management makes it clear that last year was an unusually strong comparator thanks to “operator-friendly” sporting results – in simple terms, outcomes favoured bookmakers then, making this year’s like-for-like tougher. That context matters: the shortfall looks cyclical rather than structural.
Profitability front and centre: 20% margin and cost discipline
Adjusted EBITDA is expected at £355-360m, which implies a margin of approximately 20% for FY25. That is in line with guidance and shows Evoke prioritised profitable growth over pure top-line expansion. Adjusted EBITDA is a commonly used measure in this sector – earnings before interest, tax, depreciation and amortisation, adjusted to strip out one-off or non-core items – and it’s a useful proxy for operating cash generation.
The group calls out successful delivery of cost savings through the year. That effort is set to continue in 2026 as Evoke accelerates mitigation actions against UK tax rises, including closing retail stores that are no longer sustainable and pursuing broader cost reductions. No specific cost or closure figures are disclosed.
Strategic review: potential sale on the table
The board is actively reviewing strategic options, including a potential sale of the group, or the sale of assets and/or business units. With that process live, Evoke is not issuing forward-looking financial guidance. Investors should expect an update “when and if appropriate” alongside full-year results in due course.
My take: a formal review introduces uncertainty, but it can also crystallise value. Evoke owns major brands and has proved it can deliver margins at the 20% level. If buyers see upside in separating assets or pushing harder in certain markets, the review could be a catalyst. Equally, no outcome is guaranteed – the RNS stresses the usual caveats – so position sizing and patience matter.
UK Budget tax rises: a real headwind, with mitigation in motion
Management is forthright about the impact of the UK Budget in November, calling the increases a “significant blow” to Evoke and the wider regulated industry. They argue it will hurt economic contribution and customer protection, while unintentionally supporting the black market. The response has been quick: store closures where they are not sustainable, plus wider cost savings.
While the exact magnitude is not disclosed, investors should assume UK retail profitability will face pressure as the tax changes bed in. The flip side is that Evoke’s international mix – and the strong Q4 in Italy and Denmark – provides diversification. Keeping UK operations efficient while leaning into higher-growth international markets looks a sensible route.
Outlook signals: early 2026 momentum, but no formal guidance
The company says positive momentum continued into 2026 with good growth across all divisions. That is encouraging, especially after a better Q4. However, with the strategic review under way, Evoke is not guiding the market on revenues, margins or capex. We will have to wait for full-year results for detail.
On balance, the set-up for 2026 looks like this: a firmer gaming base, international growth, and a cost programme to counter UK tax pressure – all while optionality from the strategic review sits in the background.
What this means for shareholders
- Operationally stable with improving profitability: FY25 Adjusted EBITDA up approximately 14-15% and margin around 20% shows discipline and execution.
- Q4 quality improving: gaming growth across the board, UK casino back to growth, and records in Italy and Denmark bode well for mix and resilience.
- Structural headwind in the UK: tax rises will weigh on returns; the mitigation plan is necessary and ongoing.
- Strategic review is a double-edged sword: it could unlock value via asset sales or a whole-company transaction, but it also raises near-term uncertainty.
Jargon buster
- Adjusted EBITDA: a profitability measure before interest, tax, depreciation and amortisation, adjusted for one-offs. It aims to show underlying operating performance.
- Constant currency: growth calculated as if exchange rates had not changed, isolating operational performance from FX movements.
- Operator-friendly sporting results: when sports outcomes favour bookmakers, boosting win margins versus an average period.
My verdict: cautiously positive, with eyes on the review
This update strikes a pragmatic tone. Revenues are only modestly higher, but margins are where they need to be, and Q4 shows healthier momentum where it counts – gaming and key international markets. The UK tax changes are a genuine negative, but Evoke is responding with cost action and portfolio focus.
The wildcard is the strategic review. If it surfaces credible buyers or a value-creating asset reshuffle, the equity could re-rate. If not, investors still have a business running at around a 20% EBITDA margin, with improving trends into early 2026. For now, it is a case of watch the execution, watch the cash discipline, and watch for any news from the boardroom.
