**Summary**
Evoke PLC, a leading betting and gaming company, reported its FY25 results, highlighting significantly improved underlying profitability with a 14% increase in Adjusted EBITDA to ยฃ356 million, in line with expectations. The companys strategic review discussions are ongoing, and it has announced discussions with Ballys Intralot S.A. regarding a possible offer for the entire share capital of the Group at 50p per share.
**Financial Highlights**
**Revenue Growth** Group revenue increased by 2% to ยฃ1,781.9 million, driven by online gaming performance and strong growth in international markets.
**Adjusted EBITDA** Increased by 14% to ยฃ356.2 million, with an Adjusted EBITDA Margin expansion of 220 basis points to 20.0%.
**Reported EBITDA** Up 43% to ยฃ301.3 million, reflecting lower exceptional costs.
**Loss After Tax** Reported a loss of ยฃ549.1 million due to ยฃ440.3 million in non-cash impairment charges related to UK Online and Retail.
**Cash and Liquidity** Cash (excluding customer balances) at ยฃ128.4 million, with total liquidity over ยฃ200 million.
**Leverage:** Reduced to 5.2xdespite UK duty increases.
**Strategic Progress**
**Growth Strategy** Continued investment in data, automation, and AI capabilities to support long-term efficiency and growth.
**Retail Estate Review** Decision to close approximately 270 shops to improve Retail profitability and long-term sustainability.
**Brand and Product Development** Launched new visual identity for William Hill, redesigned apps, and new product launches.
**Current Trading and Outlook**
**Q1 2026** Revenue in line with management expectations, with 2% growth on a like-for-like basis excluding retail closures.
**UK Online** Strong performance with 5% growth, driven by gaming growth of 8%.
**International** Down 2%, with strong growth in Italy and Denmark offset by declines in Spain, Romania, and rest of the world.
**Retail** Flat but with 3% like-for-like growth, taking market share.
**Strategic Review**
**UK Duty Changes** Significant increases in gambling duties announced in November 2025, leading to a strategic review to maximize shareholder value.
**Discussions with Ballys Intralot S.A.** Ongoing discussions regarding a possible offer for the entire share capital of the Group at 50p per share.
**CEOs Review**
**2025 Performance** Described as a year of strategic and operational progress, with improved profitability and decisive actions in response to external changes.
**UK Market Taxation Changes** Highlighted the impact of increased duties on the UK market and the need for urgent action to address the black market.
**Strategic Review** Initiated to assess options for maximizing shareholder value, including a potential sale of the Group.
**Operational Focus for 2026** Protecting cash, executing UK mitigation plans, accelerating international growth, embedding AI-led automation, and maintaining a lean operating structure.
**CFOs Report**
**Financial Performance** Highlighted improved profitability, strengthened operating model, and progress on deleveraging.
**UK Duty Changes** Led to significant impairment charges and the need for mitigation plans.
**Liquidity and Financing** Robust liquidity position with access to over ยฃ200 million, including undrawn capacity.
**Outlook** Focus on financial discipline, cash generation, and strengthening the balance sheet.
**Principal Risks and Uncertainties**
**Strategic Execution Risks** Challenges in executing strategic change amidst UK gambling tax changes and regulatory evolution.
**ESG Risks** Potential impacts from climate-related factors, stakeholder expectations, and governance requirements.
**Tax Risks** Complex tax rules across jurisdictions, including transfer pricing and compliance.
**Leverage Risks** High leverage may constrain financial flexibility and resilience.
**People Risks** Attracting and retaining skilled personnel during organizational change.
**Third-Party Risks** Reliance on third parties for critical services, including technology and payments.
**Cyber and Information Security Risks** Threats from external attacks and internal misuse.
**Product & Technology Risks** Challenges in technology delivery and platform performance.
**Regulatory and Compliance Risks** Evolving regulatory requirements, particularly in safer gambling and data protection.
**Anti-Money Laundering Risks** Exposure to financial crime and regulatory expectations.
**Post Balance Sheet Events**
**Retail Store Closures** Announced closure of approximately 15% of retail stores to improve profitability.
**Discussions with Ballys Intralot S.A.** Ongoing discussions regarding a possible offer for the Group.
**Year-on-Year Comparison:** - **Revenue:** Increased by 1.6% from ยฃ1,754.5 million in 2024 to ยฃ1,781.9 million in 2025.
- **EBITDA:** Increased by 14.0% from ยฃ312.5 million in 2024 to ยฃ356.2 million in 2025.
- **Debt:** Increased by 4.2% from ยฃ1,787.7 million in 2024 to ยฃ1,862.7 million in 2025.