Evoke Revenue Stays Flat as Gaming Duties Hit H1 Profit

Evoke reported flat H1 2026 revenue and lower earnings after higher gaming duties added £46 million to costs. The William Hill, 888 and Mr Green operator offset more than half of the increase, but net leverage still rose to 5.6x ahead of the Bally’s Intralot shareholder vote on August 17.

Good to Know

• Revenue held at £887.5 million, while adjusted EBITDA fell 10% to £150.2 million.
• UK and Ireland Online adjusted EBITDA increased 28% despite higher UK gaming duties from April.
• Net leverage increased from 5.2x at the end of 2025 to 5.6x at June 30.

Higher Duties Cut Into Evoke Earnings

Gaming duties became the main drag on first half profit. Evoke said higher rates in the UK, Romania and Italy raised costs by £46 million year on year. Gross profit consequently fell 7% to £552.4 million, while the gross margin dropped from 66.8% to 62.2%.

Management responded by spending less on marketing and tightening promotional costs. Marketing expenditure fell 18.5% to £115.8 million, reducing the marketing to revenue ratio from 16% to 13%. Those measures recovered more than half of the additional duty expense.

CEO Per Widerström said:

“The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK. We responded decisively, focusing on the areas within our control.”

UK and Ireland Online provided the strongest counterweight. Revenue increased 4%, including 7% gaming growth, with William Hill performing well. Adjusted EBITDA rose 28% even after the new UK duty rates took effect on April 1. Evoke continued to reduce lower return activity at 888 rather than chase revenue volume.

Retail also produced higher earnings from a smaller estate. Like for like revenue increased 4%, while reported revenue fell 3% after Evoke operated around 270 fewer shops than a year earlier. Around 200 locations closed in May. Investment in gaming machines and 2,000 new self service betting terminals supported the remaining estate.

International revenue fell 2%. Italy grew 21% and Denmark 13%, but weaker results in Spain, Romania and other markets offset those gains. Higher duties also reduced International profitability.

Leverage Rises Before Bally’s Intralot Vote

Underlying free cash flow reached £85 million, but net debt increased by around £37 million and leverage climbed to 5.6x. Cash excluding customer balances stood at £105.6 million, while total liquidity was about £150 million, including a £43 million undrawn revolving credit facility.

Balance sheet pressure adds weight to the proposed acquisition by Bally’s Intralot. Evoke shareholders will vote at a court meeting and general meeting on August 17. The companies still expect completion in Q4 2026 or Q1 2027, subject to shareholder, regulatory and other approvals.

Evoke has stopped providing forward financial guidance while the transaction remains pending. Trading after June 30 has remained in line with management expectations, helped by customer activity around the FIFA World Cup.

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