Sportsbook-Friendly Results Behind Evoke’s Boosted Annual Guidance
Evoke, the parent company of William Hill and 888, saw its shares surge over 10% in early trading after announcing a strong Q4 revenue forecast.
The gaming and betting operator based in Gibraltar anticipates year-on-year (YoY) revenue growth of 12% to 13%, which would translate to approximately £479 million ($583 million) compared to £424 million ($516 million) in the fourth quarter of 2023.
On a constant currency (cc) basis, revenue is projected to grow by 13% to 14%.
Ongoing Growth Across Core Markets
According to management, this growth is largely driven by the online division, which is expected to post a revenue increase of 16% to 17%, or 18% to 19% on a cc basis.
In a trading update released on January 17, Evoke highlighted “continued improvement in the growth rate across core markets,” propelling its stock to 76p at the time of reporting.
Evoke’s core markets, which include the UK, Italy, Spain, Denmark, and Romania, account for roughly 90% of its revenue.
Romania became a significant addition following the company’s acquisition of a majority stake in local operator Winner.ro last year.
Management credited the strong performance in these markets to the successful execution of the group’s strategy and favorable sports results during Q4.
Exceeding Analyst Expectations
In 2023, Evoke reported an adjusted EBITDA of £308.3 million. As a result, leading UK investment bank Peel Hunt increased its full-year EBITDA forecast to £309 million ($376 million), up from £284 million ($346 million).
“We believe investors will take confidence from two consecutive quarters of revenue growth and the (2024) upgrades,” the broker noted.
For H2 2024, Evoke now expects revenue to rise 8% compared to H2 2023, aligning with the upper range of its earlier guidance of 5% to 9% growth.
The update also noted robust cost management and operational efficiency, which are expected to drive adjusted EBITDA toward the top end of the £300 million ($365.9 million) to £310 million ($378 million) guidance for the year.
This figure goes well over analysts’ expectations, which had averaged £294 million ($358 million) based on six estimates.
Pivotal Year for the Company
Chief executive officer Per Widerström described 2024 as a “pivotal” year for Evoke, emphasizing the company’s progress in delivering its value creation plan.
“I am pleased to report that the improving trends we announced in Q3 further strengthened into Q4 with the business delivering double-digit revenue growth,” he said.
While acknowledging the boost from favorable sports outcomes, Widerström highlighted the “significantly improved underlying momentum” as proof of a successful turnaround.
He added that the group was well-positioned for future growth and focused on aligning its brands and products with clear customer value propositions.
In November, when it released its Q3 financial results, Evoke hinted it could give up the US market and shift its focus to European markets where it was already enjoying excellent growth.
As a direct result of the shift, the operator announced it would discontinue its Sports Illustrated Casino in Michigan during the first quarter of 2025.
