Evoke's financial performance remained steady in the first half of 2026, despite facing pressure from rising taxes in the UK as it approached its takeover by Bally’s Intralot. The company disclosed revenue figures on Wednesday, noting a slight decline to £887.5 million from £887.8 million year-over-year.
Evoke's EBITDA decreased by 12% to £124.8 million. Although adjusted EBITDA at £150.2 million met expectations, the firm's earnings were impacted by a £46 million increase in gaming duties. The escalation in taxation was primarily due to the UK government's decision to raise the Remote Gaming Duty rate from 21% to 40%, effective April 1, 2026.
Despite the challenges, Evoke reported that over half of the additional tax burden was mitigated during the first half, thanks to more efficient marketing spending and operational cost savings.
CEO Per Widerström emphasized that their operational enhancements positioned Evoke to better withstand the financial strains facing the sector. "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," he stated. Widerström added that decisive actions in operational areas had allowed them to maintain revenue growth and safeguard profitability.
In terms of regional performance, Evoke's online revenue in the UK and Ireland grew by 4%, benefiting from a 7% increase in gaming, largely driven by strong results from William Hill. Adjusted EBITDA from this segment also rose, up 28% despite prevailing pressures.
Conversely, revenue from 888 saw a decrease, which Evoke attributed to its new strategic focus on profitability rather than sheer volume. International revenue slipped by 2%, although Italy and Denmark showed growth at 21% and 13%, respectively. Nonetheless, performance waned in Spain, Romania, and other international markets. The international adjusted EBITDA dropped significantly by 20%, primarily due to heightened duty rates in Romania and Italy.
There are discussions around the potential sale of Evoke's Italian operations following the takeover, but Bally’s Intralot CEO Robeson Reeves has been optimistic about retaining this asset. He remarked, "People will talk to me and say, ‘Why don’t you sell Italy?’ or something like that. Italy is one of the prized assets, probably one of the things I’d refuse to sell.”
Evoke reported that retail revenue grew by 4% year-on-year on a like-for-like basis, thanks to the 2025 launch of new gaming machines and improvements to self-service betting terminals (SSBTs). However, on a reported basis, retail revenue fell by 3% due to a reduction in the number of retail locations. In H1, Evoke had around 270 fewer shops compared to the previous year, which included the closure of 200 William Hill outlets in May 2026, accounting for about 15% of its retail estate. The company intends to focus on investing in its remaining shops to enhance profitability.
The takeover of Evoke by Bally’s Intralot, valued at approximately £243.1 million, remains on track for completion either in the fourth quarter of 2026 or the first quarter of 2027. This transaction follows Evoke’s strategic review initiated in December 2025, partly motivated by the rise in UK taxes. While the takeover awaits shareholder and regulatory approvals, Widerström affirmed that the company’s priorities would not change until the deal is finalized, emphasizing their commitment to customer service, colleague support, disciplined execution, and strong cash generation. Due to the ongoing takeover negotiations, Evoke did not provide forward financial guidance.
