Evoke plc

Revenue was GBP 888 million, flat reported and up 2% like-for-like, with 270 fewer stores than the prior year. Adjusted EBITDA was GBP 150 million, down 10% year on year, and management said gaming duties created a GBP 46 million headwind, including about GBP 30 million from the U.K. and about GBP 10 million from Italy, with the remainder mainly from Romania. UK&I online revenue rose 4% and adjusted EBITDA increased 28%; retail like-for-like revenue rose 4% and adjusted EBITDA increased 5%; international revenue fell 2% and adjusted EBITDA fell 20%. Cash generated from underlying free cash flow was GBP 85 million, net debt increased by about GBP 37 million, leverage rose to 5.6x, and period-end cash was GBP 106 million with GBP 43 million of undrawn RCF capacity, for total liquidity of approximately GBP 150 million. Management said it is not providing forward-looking financial guidance, and it continues to expect the Bally’s Intralot transaction to complete in Q4 2026 or Q1 2027.

Per Widerstrom framed the half as a resilience story in a materially tougher duty environment, saying the business responded decisively and focused on what it can control: commercial efficiency, cost discipline, cash generation and execution. He highlighted continued momentum in UK&I online, encouraging retail trends after shop closures, and strong execution around the World Cup, which he said delivered better customer engagement and revenue than expected. He also emphasized that the strategic review concluded the recommended Bally’s Intralot deal was the most attractive and deliverable outcome and would provide a stronger long-term capital structure.

Sean Wilkins said performance was broadly in line with expectations and called the start to the year “decent” given the external pressure. He quantified the main EBITDA bridge: GBP 150 million adjusted EBITDA, up against a GBP 46 million gaming-duty headwind, with more than half of that offset through more efficient marketing, improved promotional efficiency and operating cost savings. He pointed to GBP 85 million of underlying free cash flow, GBP 27 million of exceptional costs, GBP 51 million of CapEx, and leverage at 5.6x, while noting cash of GBP 106 million and GBP 43 million of undrawn RCF capacity. He also said the higher leverage and duty burden underscore the constraints of the current capital structure and why the recommended acquisition matters.

Analysts pressed management on what drove UK online EBITDA growth despite duties, and Sean Wilkins said it came from both 4% revenue growth and materially better marketing efficiency, plus retail closures that removed loss-making stores. On international margin compression, he pointed to three drivers: Italy duty, Romania duty rising from 21% to 30%, and mix shifting toward higher-duty markets such as Denmark and Italy. Other questions focused on active-user declines, sportsbook margin, Spain and Romania recovery plans, the World Cup, and whether further regulatory/tax pressure could hit the U.K.; management said it is investing more in Spain’s product and tech, keeping a close eye on cash in Romania, and engaging with the Gambling Commission on FRAs to keep implementation proportionate.