Key points:
- Evoke’s Q3 2024 revenue increased by 3% to £417m; share prices have responded with a 3% rise to £0.59
- International revenue rose by 14%, with Italy and Spain leading with a 26% growth
- UK sports betting revenue fell by 13%, impacted by customer-friendly results in football
Evoke announced a 3% increase in revenue for the third quarter of 2024, reaching £417m ($544m). This represents the company's first quarter of year-over-year revenue growth since the first quarter of 2022.
The overall performance was largely driven by strong gains in its core international markets, with international revenues up by 14%, including a 26% rise in key regions such as Italy and Spain.
Italy saw particularly strong results, with a 31% revenue increase in constant currency, where Evoke’s 888casino brand secured a leading position in the online casino market.
Meanwhile, the company’s online operations posted an 8% rise in revenue, with growth of 11% in core markets like Romania, now a key focus for Evoke following its acquisition of Winner.ro earlier this year.
However, Evoke’s UK segment faced challenges, with sports betting revenue declining by 13% due to customer-friendly football results in September, which impacted group revenue by £10m.
UK and Ireland online operations saw a 3% overall revenue increase, with gaming up 12%, partially offsetting the decline in betting.
Good to know: Evoke’s acquisition of Winner.ro, completed in early October, has further bolstered its position in Romania, now the company's fifth core market. This integration is expected to deliver cost and revenue synergies over the coming months.
Retail operations also experienced a 9% drop in revenue, primarily due to lower-than-expected net win margins and market share losses in gaming.
The newly appointed retail managing director began implementing measures to address these issues, with a rollout of 5,000 new gaming machines set for completion by the first quarter of 2025.
The company reiterated its guidance for the second half of 2024, maintaining a revenue growth target of 5-9%, with an adjusted EBITDA margin of approximately 21%.
