Evoke takes UK gaming duty hit as gears up for Intralot takeover
Evoke PLC on Wednesday said gaming duties, particularly in the UK, hit profitability in the first half of the year although revenue remained broadly flat.
The betting firm which owns William Hill, 888 and Mr Green said its pretax loss widened slightly to £80.0 million in the first half of 2026 from £77.7 million a year earlier.
Adjusted earnings before interest, tax, depreciation and amortisation fell 10% to £150.2 million from £165.9 million, an outcome in line with expectations, Evoke said.
This reflected significantly improved underlying profitability year-on-year offset by a £46 million year-on-year increase in gaming duties, predominantly in the UK.
"Over half of this gross duty headwind during the period was offset through lower but more effective marketing investment, improved promotional efficiency and operational cost savings," Evoke said.
Revenue was little changed on-year at £887.5 million from £887.8 million but rose 2% on a like-for-like basis, excluding the impact of around 270 fewer retail shops compared with the prior-year period.
UK & Ireland online revenue increased by 4%, including 7% growth in gaming, driven by continued strong performance from William Hill. Revenue from 888 declined reflecting a focus on profitability rather than pursuing lower-return volume.
International revenue declined by 2%, with strong growth in Italy, up 21%, and Denmark, up 13%, offset by weaker performance in Spain, Romania and Rest of World markets.
Retail revenue increased by 4% on a like-for-like basis, supported by the prior year rollout of gaming machines.
"The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK," Chief Executive Per Widerstrom said.
Trading since the period end has remained in line with management expectations with strong levels of engagement throughout the FIFA World Cup providing a good foundation ahead of the upcoming football season, Evoke said.
But considering the recommended acquisition by Bally's Intralot SA, the firm did not provide forward-looking financial guidance.
Evoke in June agreed to a £243 million takeover offer from Bally's Intralot.
The offer will see Evoke investors receive 0.537 of a new Intralot share for each Evoke share, with the new shares being listed on Euronext Athens, valuing Evoke at 52p per share.
On Wednesday morning, Evoke shares rose 0.9% to 45.90 pence each in London.
The deal remains subject to shareholder, regulatory and other approvals, including approval by shareholders at a court meeting and general meeting scheduled for next Monday.
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