Evoke's revenue remained relatively stable in the first half of 2026, facing challenges from tax increases in the UK that precede its pending takeover by Bally's Intralot.
On Wednesday, Evoke released its H1 2026 results, reporting a slight decline in revenue from £887.8 million last year to £887.5 million in the current period. EBITDA also fell by 12% to £124.8 million, although adjusted EBITDA was reported at £150.2 million, meeting the company’s expectations. A substantial factor affecting these figures was a £46 million rise in gaming duties, driven primarily by the UK's Remote Gaming Duty increase from 21% to 40%, effective 1 April.
Despite the tax pressure, Evoke managed to mitigate over half of the duty increase through efficient marketing expenditures, better promotional strategies, and operational cost savings. CEO Per Widerström noted that the company’s operational enhancements have positioned it to better cope with the industry's escalating cost pressures.
"The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across our core markets, particularly in the UK," Widerström stated. He emphasized the decisive measures taken by Evoke, which allowed the company to maintain operational momentum, achieve like-for-like revenue growth, and safeguard profitability and cash flow.
Focusing on regional performance, Evoke reported a 4% increase in online revenue for the UK and Ireland, with gaming showing a 7% rise, largely attributed to strong results from William Hill. The adjusted EBITDA for this segment soared by 28% in spite of the adverse conditions. However, Evoke acknowledged that revenue from 888 declined, as the company emphasized profitability over pursuing lower-return volumes.
Internationally, revenue dipped by 2%, despite notable growth in Italy (21%) and Denmark (13%). Performance in Spain, Romania, and other markets, termed the "Rest of World," was less favorable, leading to a 20% drop in international adjusted EBITDA due to increased duty rates in Romania and Italy. Following the acquisition, some speculated that Bally’s Intralot might divest its Italian operations, although CEO Robeson Reeves defended the asset, calling it one of the company's prized possessions.
In retail, Evoke experienced a 4% year-on-year increase in revenue on a like-for-like basis, aided by the rollout of gaming machines and enhancements to SSBTs. However, reported retail revenue fell by 3%, influenced by a reduction in the number of retail locations. Evoke closed approximately 270 shops in H1 compared to last year, with the closure of 200 William Hill shops in May alone, making up about 15% of its retail estate. The company plans to concentrate investments on its remaining shops to enhance their profitability.
The takeover by Bally’s Intralot, worth about £243.1 million in an all-share transaction, remains on course. Evoke initiated a strategic review in December 2025, partly prompted by the UK’s tax increases, but the deal requires approval from shareholders and regulatory bodies before completion. The expected timeline for finalizing the takeover is either Q4 2026 or Q1 2027. Widerström affirmed that the company’s priorities would remain focused on customer service and disciplined execution until the acquisition is finalized. Due to the pending takeover, Evoke did not provide forward financial guidance.
