Evoke on Tuesday reported a 149% surge in annual losses, posting a £549.1 million deficit for the fiscal year ending Dec. 31, 2025, as the betting group prepares for sweeping regulatory and tax changes in the United Kingdom.
The company, which owns William Hill, 888 and Mr Green, said group revenue rose 2% to £1.78 billion, while adjusted EBITDA increased 14% to £356 million, lifting margins to 20%. Executives attributed the improvement to tighter marketing discipline, cost efficiencies and a streamlined operating structure.
Chief Executive Per Widerström said the company has made “consistent operational progress” over the past two years, citing improved marketing returns, stronger cost control and a return to underlying profitability. He added that early 2026 trading has been in line with expectations despite a challenging environment.
Tax Hikes Signal ‘Fundamental Shift’
The company warned that recently announced tax increases will reshape the economics of the UK gambling sector. In November, Chancellor Rachel Reeves confirmed that the tax rate on online games and slots would rise from 21% to 40%, effective this month, while the duty on sports betting will increase from 15% to 25% in April 2027.
Widerström said the changes represent a “fundamental shift” for Evoke’s largest market and will have “a substantial impact across the regulated industry.” He said the company has launched a strategic review and implemented operational changes to protect long‑term shareholder value.
Chief Financial Officer Sean Wilkins told analysts the company has not yet seen an impact from the new tax regime, saying the first 30 days of trading showed stable performance in the UK online segment. He added that smaller operators are likely to be hit hardest, potentially accelerating market consolidation.
230 William Hill Shops to Close
Evoke confirmed it will close 230 William Hill retail shops following a review of its estate, a move the company says will improve profitability and long‑term sustainability.
Sixty‑eight locations were shuttered in the fourth quarter of 2025, with the remaining closures scheduled for the second quarter of 2026. Wilkins said the consolidation will add $11 million to EBITDA on a fully annualized basis. More than 1,000 William Hill shops will remain open.
The closures come as Evoke continues a broader strategic review. Last week, reports surfaced that the debt‑laden company is weighing a £225.3 million takeover offer from Greek lottery and gaming operator Bally’s Intralot, sending Evoke shares up nearly 16%. The company declined to comment further, saying discussions are ongoing.
Mixed Performance Across Markets
Evoke reported a 3% decline in UK and Ireland online revenue, driven by a 12% drop in sports betting on flat stakes. Retail revenue in the region slipped 1%, though gaming revenue rose 5% following the rollout of new gaming machines.
International online revenue increased 9%, with 17% growth in core markets and record results in Italy and Denmark. Gains were supported by the acquisition of Winner in Romania and offset by Evoke’s exit from the U.S. B2C market at the end of 2024.
Deleveraging Remains a Priority
Analysts pressed executives on when shareholders might see value restored, noting the company’s share price has fallen sharply while debt has increased.
Widerström said management remains focused on “profitable growth, expanding the EBITDA margin and deleveraging,” calling those priorities the “three pillars” of Evoke’s long‑term plan.
“As a shareholder myself, I can reassure you we are absolutely focused on delivering shareholder value,” he said.
