Evoke's revenue remained nearly unchanged in the first half of 2026 as tax increases in the UK impacted its financial performance ahead of its takeover by Bally's Intralot.
On Wednesday, Evoke released its results for the first half of 2026, revealing a slight revenue decrease to £887.5 million, down from £887.8 million in the previous year.
The company reported an EBITDA decline of 12%, dropping to £124.8 million. While the adjusted EBITDA of £150.2 million met expectations, the company faced a £46 million increase year-on-year in gaming duties. This spike in taxes is largely attributed to the UK’s Remote Gaming Duty rate increase from 21% to 40%, effective April 1, 2026.
Evoke managed to mitigate over half of the headwind from the increased duty, thanks to more efficient marketing spending, improved promotion strategies, and operational cost savings.
CEO Per Widerström noted that Evoke’s operational improvements had positioned the company to better absorb the rising cost pressures impacting the gaming 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 emphasized a decisive response to the situation, focusing on controllable aspects of the business. This strategy has allowed Evoke to sustain operational momentum, achieve like-for-like revenue growth, and protect profitability and cash generation.
On a regional basis, Evoke's UK and Ireland online revenue rose by 4%, with a 7% increase in gaming attributed to strong performance from William Hill. The adjusted EBITDA from this segment experienced a substantial 28% increase despite ongoing challenges.
Nonetheless, Evoke reported a decline in revenue from 888, which the company attributed to its prioritization of profitability and customer economics instead of pursuing volume-driven sales. In international markets, revenue dipped by 2%, even as Italy saw a 21% increase and Denmark a 13% rise. However, performance was weaker in Spain, Romania, and other global markets. International adjusted EBITDA fell by 20%, influenced by increased duty rates in Romania and Italy.
Interestingly, some industry insiders have suggested Italy might be a selling point for Bally's Intralot after the takeover, yet CEO Robeson Reeves expressed a contrary view, detailing, "Italy is one of the prized assets, probably one of the things I’d refuse to sell."
In the retail sector, Evoke's revenue grew by 4% year-on-year on a like-for-like basis, supported by the rollout of gaming machines in 2025 and enhancements to its SSBTs. However, reported revenue fell by 3%, reflective of a reduced retail footprint, with approximately 270 fewer locations than last year. The company closed 200 William Hill shops in May 2026 alone, accounting for 15% of its retail estate. Evoke stated that it is now focusing on enhancing the profitability of its remaining locations and investing in them further.
As for the takeover by Bally's Intralot, announced in June for an estimated £243.1 million, the transaction remains in progress. Evoke had been contemplating selling parts of its business since initiating a strategic review in December 2025, partly due to the increasing tax burdens. Completion of the takeover awaits shareholder and regulatory approvals, but it is on course to conclude in either Q4 2026 or Q1 2027.
Widerström affirmed that the priorities of Evoke remain unchanged until the takeover is finalized, stating, "We continue to focus on serving our customers, supporting our colleagues, maintaining disciplined execution and delivering strong cash generation." Due to the impending takeover, Evoke did not provide forward financial guidance.
