Evoke Delivers Best Quarter of FY25 as Gaming Growth Offsets Betting Decline

Evoke has reported its strongest quarter of 2025, with robust gaming performance across core markets helping to lift profitability despite a sharp fall in betting revenue and growing pressure from the UK’s evolving tax landscape.

In its Q4 trading update, the William Hill, 888 and Mr Green owner said revenue for the final quarter of the year reached around £464m, reflecting a modest decline year-on-year but highlighting continued underlying growth across key segments.

Gaming emerged as the primary driver of performance, with revenue rising 9% compared with the same period last year. Growth was recorded across all divisions, including a return to expansion for 888casino in the UK, alongside double-digit gains in retail and international operations.

By contrast, betting revenue dropped by 22%, largely due to a tough comparative period marked by operator-friendly sporting results in the previous year.

Full-year outlook supported by margin improvement

On a full-year basis, Evoke expects FY2025 revenue of approximately £1.79bn, representing around 2% growth year-on-year. Adjusted EBITDA is forecast between £355m and £360m, up roughly 14–15%, implying an EBITDA margin close to 20%.

The company said the improvement reflects tighter cost control and disciplined execution across its core markets.

“During Q4 we made good progress against our strategic plans, delivering our best quarter of the year and demonstrating the underlying momentum in the business,” said chief executive Per Widerström.

“Our focus on core markets continued to drive our profitable growth, with Italy and Denmark both delivering record quarterly revenues in Q4. This positive momentum has continued into 2026 with a strong start to the year with good growth across all divisions.”

Strategic uncertainty amid UK tax changes

Alongside its trading update, Evoke confirmed that its board continues to assess strategic options following the UK government’s November Budget, which introduced significant increases in gambling taxation.

The review includes the potential sale of the group or selected assets, though Evoke said it would not issue forward-looking guidance while the process remains ongoing.

Widerström said the budget had fundamentally altered the operating environment for the regulated sector.

“We were very disappointed with the outcome of the UK Budget in November that dealt a significant blow to both Evoke and the wider regulated industry,” he said.

“We continue to believe these tax increases will negatively impact the industry’s economic contribution, customer protection and will ultimately serve to support further growth in the illegal black market.”

Retail closures and mitigation measures

As part of its response to the higher tax burden, Evoke has begun implementing mitigation measures, including the closure of UK retail locations deemed commercially unviable.

“We have moved quickly and decisively to execute on our mitigation plans, including the closure of retail stores that are no longer sustainable as well as broader cost savings,” Widerström said.

The group has previously indicated that a significant number of William Hill shops could be affected as it restructures its retail footprint to adapt to rising costs and shifting market dynamics.

Market reaction and broader implications

Evoke’s update comes against a backdrop of investor caution, with the company’s share price falling in early trading following the announcement. The reaction reflects wider uncertainty over how operators will navigate the combined impact of higher taxation, changing consumer behaviour and intensifying competition.

While gaming growth continues to underpin Evoke’s financial performance, the company’s outlook highlights a broader structural shift within the UK gambling industry. As margins tighten and regulatory pressure intensifies, operators are increasingly forced to reassess business models, asset portfolios and long-term investment strategies.

For Evoke, the challenge now is balancing continued growth in gaming with the need to restructure its retail estate and evaluate strategic options in a rapidly evolving regulatory environment.