For the first half of 2023, Evoke has released its trading update. The report is a mixed results that have led to revised expectations for the budgetary year.
Evoke reported revenues of estimated £431 million or $560 million for the second quarter of 2024. It remains stable both sequentially and year-on-year. The UK online sector saw a 3% revenue increase. This growth was driven by a 6% increase in gaming due to product and promotional improvements.
Nonetheless, sports betting faced challenges from marketing and proposition changes in the past year. It also experienced lower-than-expected returns from first-quarter promotional activities. However, adjustments in leadership and commercial strategies have begun showing positive early results. Additionally, a new pricing and promotions approach has also contributed to these improvements.
Evoke’s revenue grew by 2% or 4% in constant currency internationally. This is due to significant growth in key markets such as Italy, Spain, and Denmark. These markets now account for about 60% of the division’s revenue.
As the company focuses on profitability and exits the US B2C business, offset these gains, reduced revenues from other markets.
Revenue remained stable in H1 2024 compared to H2 2023 in the UK retail sector. Yet, was 8% lower than in last year. A strong comparative period influenced it. Plans to address performance include leadership changes and the rollout of a new gaming machines and improved sports betting technology.
Evoke expects the adjusted EBITDA margin for H1 2024 to be around 13-14%. Heavily weighted marketing costs in the first half and lower-than-expected revenue influence this margin.
Evoke launched a new strategy and value creation plan in March this year. This officially changes its name to Evoke in May. This strategy focuses on mid- and long-term profitable growth. It aims to achieve this by investing in the group’s capabilities. The strategy also focuses on transforming the business around a clear customer value proposition and competitive advantages.
