Evoke, the parent company of gambling brands William Hill and 888, has reported a significant increase in pre-tax losses for the first half of 2024. The company, formerly known as 888 Holdings, recorded losses of £147m, a substantial jump from the £45.2m reported during the same period last year.
Earnings before interest and taxes also saw a significant decline, dropping by 67% from £130.8m in the first six months of 2023 to £43.8m in the first half of this year. Evoke’s chief executive, Per Widerstrom, expressed disappointment and acknowledged that the results were not acceptable during a call with investors. He also stated that the company has identified the issues and implemented corrective measures.
The company attributed the downturn to challenging conditions on the high street and increased competition from its rivals. Chief financial officer Sean Wilkins also noted that returns from marketing investments were not as successful as anticipated. The UK market saw a particularly sharp decline, with retail division revenues down 8%, although online revenues for the region increased by 1%. Overall, Evoke reported a 2% decrease in revenue, totaling £862m in the first half of 2024.
In terms of recent events in the business world, the UK economy saw a 0.6% growth, train fare prosecutions were overturned, and the mobile industry’s signal quality was criticized by a prominent figure. Mr. Wilkins also highlighted the company’s success during the Euros, with strong margins and favorable results from bets placed during the football tournament. He stated, “It was very successful for us.”
Mr. Widerstrom acknowledged that Evoke is currently undergoing a complete transformation, including a rebranding, restructuring of the leadership team, and other improvements. He expressed confidence that these changes would improve the company’s performance, stating, “The underlying health of the business is continually getting stronger.”
Additionally, Evoke recently sold its consumer-facing 888 gambling business in the US to Hard Rock Digital. This news comes just days after rival company Flutter, which owns brands such as Paddy Power and Betfair, reported a 20% increase in revenues in the last quarter, totaling $3.6bn (£2.8bn) compared to the same period last year.
In other news, it has been reported that Evoke is in talks to acquire the consumer arm of Playtech, a major gambling company in Italy, in a deal potentially worth £2bn. These developments highlight the company’s efforts to stay competitive and improve its performance in the market.
