Evoke (LSE: EVOK), a global leader in the betting and gaming industry with powerhouse brands such as William Hill, 888, and Mr Green, has announced robust financial performance in its post-close trading update for Q4 and FY24, ending December 31, 2024. The update reveals impressive double-digit revenue growth in Q4, driven by the company’s online segment, and projects full-year EBITDA at the high end of its guidance, exceeding market expectations.
Strong Q4 Performance Drives Growth
Evoke’s Q4 revenue surged by approximately 12-13% year-over-year (13-14% in constant currency), supported by a standout performance in its online division, which grew by 16-17% (18-19% in constant currency). The growth reflects an improved trajectory in the company’s core markets, powered by the successful execution of its strategy and favorable operator-friendly sports results during the quarter.
The company’s second-half revenue growth reached approximately 8%, positioning it at the higher end of the previously communicated guidance range of 5-9%.
EBITDA and Cost Efficiency Outpace Expectations
The company’s disciplined focus on cost control and operational efficiency has resulted in a stronger-than-expected financial position. Evoke anticipates adjusted EBITDA for FY24 to reach the top end of its guidance range of £300-310 million, significantly surpassing market forecasts.
CEO Per Widerström credited the company’s momentum to its ongoing business transformation:
« The improving trends we announced in Q3 further strengthened into Q4, delivering double-digit revenue growth. While Q4 was buoyed by favorable sports outcomes, the underlying momentum in the business gives me confidence that the turnaround is working, and we are well-positioned to continue our growth trend into 2025. »
Strategic Transformation and Focus on Core Markets
2024 was a pivotal year for Evoke as it rolled out a bold new strategy aimed at long-term profitability. The company concentrated its efforts on five core markets, which accounted for approximately 90% of Q4 revenue, and aligned its brands and products more closely with customer value propositions.
Widerström emphasized the importance of operational discipline and long-term vision:
« This year, we radically transformed almost every area of the business and moved decisively to position Evoke for mid- and long-term profitable growth. With improving momentum, we will continue executing our value creation plan in 2025. »
Outlook for 2025
Looking ahead, Evoke is confident in sustaining its growth trajectory, with plans to further refine its competitive edge through brand alignment, improved customer offerings, and disciplined operational execution. The company will outline its progress and future strategy in greater detail during an investor update scheduled for March 2025.
Key Takeaways
Evoke’s Q4 results underscore its successful turnaround strategy, strong online performance, and disciplined cost management. As the company heads into 2025, it is well-positioned to build on this momentum and deliver long-term value to shareholders.
