Evoke, a major player in the iGaming sector, reported a significant increase in losses for the fiscal year 2025, marking a 149% decline in profit after tax to a loss of £541 million. This announcement was made during a delayed financial results briefing on Thursday, where CEO Per Widerström addressed concerns from investors. The company, which operates in the UK and other international markets, faces challenges including a rising debt load and ongoing market pressures. Widerström emphasized the company’s commitment to enhancing shareholder value amidst these financial hurdles.
Evoke’s group revenue saw a modest 2% year-on-year growth, reaching £1.78 billion, while EBITDA increased by 43% to £301 million. However, analysts and stakeholders have raised concerns about the company’s overall financial health, noting that the revenue growth does not keep pace with inflation in its key markets. According to Regulus Partners, Evoke’s revenue growth is effectively a real-terms decline, with a noticeable 3% drop in revenue from the UK and Ireland, driven by a 12% fall in betting revenues despite steady stakes and a slight 2% rise in gaming.
The increase in the UK’s Remote Gaming Duty in April has not yet significantly impacted Evoke’s revenues, according to CFO Sean Wilkins. During the briefing, Wilkins expressed satisfaction with the performance of the UK online segment and suggested that the company remains well-positioned to maintain its revenue mix despite the new tax regime. Like other major competitors such as Bally’s and Entain, Evoke anticipates gaining market share as smaller operators struggle with the increased tax burden, potentially leading to market consolidation.
Internationally, Evoke reported a 9% increase in revenue, driven by strong performances in Italy and Denmark. The company claims to be gaining market share in these regions, which could help offset some of the pressures faced in the UK market. However, in the UK retail sector, Evoke saw a 1% decline, attributed to the closure of several outlets. Widerström explained that these closures were part of a strategy to ensure long-term profitability and sustainability through improved cash regeneration.
Financially, Evoke is contending with increased debt and cash flow issues. The net cash position shifted from a positive inflow of £9 million in 2024 to minus £34 million at the end of 2025. Net debt rose slightly to £1.86 billion, compared to £1.79 billion the previous year. These changes are partly due to one-off regulatory and tax expenses, including a reclassification of historical gaming taxes in Austria, costing £8 million, and a significant licensing fee in Italy following updates to its regulatory framework.
Widerström opted not to discuss the ongoing strategic review during the results call, a process that could lead to Evoke being acquired by Bally’s Intralot for £225 million. This potential deal is expected to be concluded in May, and has been highlighted by Bally’s Intralot as a chance to leverage its operational expertise to enhance Evoke’s financial performance.
Looking forward, Evoke is focused on navigating the challenges posed by regulatory changes and competitive pressures within the market. The company’s leadership is committed to executing strategies that will stabilize its financial position and capitalize on opportunities in both existing and emerging markets. The outcome of the potential acquisition by Bally’s Intralot and its impact on Evoke’s strategic direction remains to be seen, with further developments anticipated after the conclusion of current negotiations.
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