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Highlights:
- Revenue Growth: Evoke PLC reports 3% revenue growth for Q3 2024, the first year-on-year increase since early 2022.
- Online and International Performance: Online revenue rose 8%, with a 26% increase in core international markets.
- Retail Decline: Retail revenue dropped by 9%, attributed to customer-friendly betting margins and market share losses.
Evoke PLC (LSE:EVOK), the parent company of William Hill and 888, reported a 3% increase in revenue to £417 million for Q3 2024, marking its first year-on-year revenue growth since Q1 2022. This improvement was attributed to market share gains in key international markets, alongside strong online performance.
The company’s online revenue surged by 8%, with core markets, including Romania, driving an 11% rise. These core markets now account for nearly 85% of Evoke’s online revenue. Additionally, the international division saw a 14% revenue growth, with a notable 26% increase in core international markets like Spain, Denmark, and Romania.
However, retail revenue declined by 9%, which Evoke attributed to customer-friendly betting margins and losses in gaming market share. Despite this, CEO Per Widerström, who has led the company for a year, expressed confidence in the firm's turnaround strategy. Widerström highlighted that the group is simultaneously improving short-term trading and transforming its long-term capabilities.
Evoke also reaffirmed its guidance for the second half of 2024, with expected revenue growth between 5% and 9%, reflecting its confidence in maintaining the current growth momentum. The CEO emphasized the company’s commitment to long-term growth and promised further updates on its progress in the coming months.
The shift towards stronger performance in online and international markets indicates Evoke’s strategy to navigate the challenges in retail and focus on its digital presence and global expansion. This approach reflects the evolving landscape of the gaming and betting industry, where online operations are becoming increasingly crucial.
