Evoke plc reported lukewarm results in its latest earnings report as the company prepares to exit North American gaming markets.
The gambling company, formerly known as 888 Holdings, posted $536.2 million in group revenue in Q3 2024, a 3% increase year-over-year. The results in Q3 were spearheaded by Evoke’s gaming business, which generated $370.7 million in revenue compared to $337.5 million for the same period last year. Evoke’s betting segment, led by its sportsbook operations, posted $164.7 million in revenue in Q3 2024, a 10% decline year-over-year.
“I am pleased to report a strong quarter of progress as we continue to implement our strategy for success and deliver our value creation plan,” said Evoke CEO Per Widerström. “We are moving decisively and at pace to position evoke for long-term growth.”
Despite the growth for its gaming segment, Evoke also saw retail revenue decline by 9% during the quarter. Evoke attributed the drop to “weaker than expected betting net win margins” due to customer-friendly results and market share losses in gaming. Evoke is attempting to combat those losses by deploying more than 5,000 new gaming machines.
Evoke is also aiming to improve its bottom line by reducing marketing costs and improving efficiency through a new marketing mix model. It is also aiming to bolster its capabilities and revenue-generating opportunities through investments in automation and AI.
Evoke sells North American assets
Evoke has reported its latest earnings as the company exits North American markets.
Earlier this year, Evoke initiated a strategic review that led to the company cutting ties with SI Sportsbook owner Authentic Brands. As a result, Evoke closed its SI Sportsbook business in Colorado with existing licenses in Michigan, New Jersey and Virginia.
Evoke has agreed to pay an initial $25 million termination fee following SI Sportbook’s shuttering in Colorado with an additional $25 million to be paid by 2029. Evoke plans to have a full exit of its North American B2C operations in Q1 2025. The company has announced plans to sell some of its U.S. B2C assets to Hard Rock Digital.
