UK retail revenue down eight per cent as William Hill owner Evoke issues trading update for first half of 2024

Shares in Evoke fell on Thursday after the parent company of William Hill issued a profits warning in its trading update covering the first half of the year.

Evoke reported a mixed first half of 2024, with UK retail revenue down eight per cent on the same period last year. 

It also said first-half adjusted core profit would be about £35-40 million below its expectations, with the full-year results for 2024 expected to be impacted.

Evoke performed more positively in its UK online business, although this was driven by gaming rather than sports betting.

There was a six per cent growth in gaming following improvements in product and promotions, while revenue was up three per cent in UK online betting.

Evoke’s chief executive Per Widerstrom unveiled a new strategy for the company in March and, while describing the change as “significant but necessary”, he reiterated his belief in the approach. The new strategy included the changing of the business identity to Evoke in May, having previously operated under the name 888 Holdings.

Widerstrom said: “We’re focused on mid- and long-term profitable growth and value creation and during the first half of the year we have made bold, decisive changes to improve almost every area of the business. 

“We’re undertaking a complete reset and transformation of the business, and the scale of change is significant, but necessary. This transformation will take time but will enhance operational efficiency, leading to a bigger, more profitable and more cash-generative business in the future.

“Our strategy defines what good looks like and how we get there, and while no journey is ever straightforward, we have learned a lot already so far this year as we pursue our goals.”

Per Widerstrom: became new chief executive of 888 Holdings - now named Evoke - in OctoberCredit: 888 Holdings

Plans are in place to address the retail performance, including a change in leadership, new future-proof gaming machines to be rolled out later this year and an improved sports broadcast offering.

Widerstrom said: “While it is disappointing the first half financials are behind our plan, the underlying health of the business is getting stronger, and the corrective actions we have already taken make us even more confident that our strategic approach is sound and will achieve sustainable success.

“I’m really pleased with the strategic progress we have made so far and I'm confident this will set us up for profitable growth in the second half of the year and beyond as we continue to invest for the mid and long-term with high conviction. 

“Our plans for 2025 and beyond are unchanged and the strategic and operational progress we have made during the first half give me increased confidence about delivering our value-creation plan."

David Brohan, gaming and leisure analyst with stockbrokers Goodbody, said it was a “mixed” trading update from Evoke.

While a return to growth in the UK online division was described as “encouraging”, he felt the UK retail performance was “quite weak”.

Brohan said: “We continue to view Evoke as an attractive equity story and believe management’s value creation plan will be transformational. However, until the group delivers on the targets set out in this plan, a significant re-rating is unlikely.”

Evoke's share price was down 10.02 per cent to 77.65p by Thursday lunchtime.

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