Evoke’s FY25 loss surges 149%, CEO tells analysts firm is ‘focused on delivering shareholder value’

(AsiaGameHub) –   During Evoke’s delayed FY2025 earnings call on Thursday, CEO Per Widerström reassured investors and analysts that the management team remains steadfast in its commitment to enhancing shareholder value, a focus he maintained has been consistent over the past few years.

The CEO’s remarks followed an observation from an analyst who noted that the company has faced persistent share price declines and rising debt levels since Widerström took the lead.

“As a shareholder myself, I can guarantee that our primary focus is on delivering value to our investors,” Widerström stated during the session. “After a period of declining revenue and profits, we have returned to a growth trajectory. We have notably boosted our EBITDA margin and are currently reducing our leverage. These are the factors within our control, and they are where we are directing our efforts.”

Regarding the financial figures, group revenue for the period rose by 2% year-on-year to £1.78 billion, while EBITDA, as highlighted by Widerström, increased by 43% to reach £301 million.

Nevertheless, the company faced significant losses during this timeframe, with profit after tax dropping by 149% to a loss of £541 million.

In a briefing published today, Regulus Partners suggested that the group’s revenue growth essentially represents a decline in real terms, given that inflation is outpacing these gains in all primary markets.

The analysis pointed to a 3% revenue dip in the UK and Ireland, fueled by a 12% slump in betting revenue despite steady wagering volumes, alongside a 2% increase in gaming.

UK RGD tax increase yet to show impact

Providing an update on performance since the Remote Gaming Duty hike took effect in April, CFO Sean Wilkins informed analysts that the group has not yet experienced any negative impact from the tax rise. He expressed confidence in the UK online division’s performance and stated he does not expect the revenue composition to shift as a result of the higher taxes.

Similar to competitors like Bally’s and Entain, Evoke anticipates gaining market share in the UK as smaller firms struggle under the weight of the tax increases.

“We foresee market consolidation and believe a significant number of smaller operators will be hit particularly hard by the new tax, which should allow us to expand our market share.”

Meanwhile, international revenue grew by 9%, supported by record-breaking results in Italy and Denmark. Widerström noted that the company is successfully capturing market share in both of these regions.

In the UK retail sector, Widerström confirmed the closure of several betting shops. This segment saw a 1% decline over the 12-month period. “We maintain a strong network of over 1,000 shops that continue to provide top-tier service and entertainment to our clientele,” the CEO remarked.

By streamlining the retail estate, he argued that the group has ensured long-term sustainability regarding profitability and cash flow generation.

He also addressed the broader macroeconomic factors influencing retail betting and mentioned that the company had performed an extensive review of its physical locations.

Rising debt and cash flow affected by non-recurring regulatory costs

Regarding debt and cash flow—key areas of interest for stakeholders—net cash at the end of 2025 stood at negative £34 million, down from a positive inflow of £9 million in 2024. Net debt saw a slight increase to £1.86 billion, compared to £1.79 billion the previous year.

Commenting on these figures, Wilkins said: “I must admit some disappointment with our cash flow results this year, though a significant portion of this is related to timing.”

The company’s finances were affected by a reclassification of historical gaming taxes in Austria, resulting in a one-time cost of £8 million in 2025. Furthermore, the firm paid a one-off licensing fee in Italy following updates to the country’s regulatory framework.

During the call, Widerström declined to answer questions concerning the group’s ongoing strategic review, which has sparked discussions with Bally’s Intralot regarding a potential £225 million acquisition of Evoke.

Those negotiations are expected to conclude in May. In a Bally’s Intralot earnings call last week, CEO Robeson Reeves spoke positively about Evoke’s international and UK online operations as significant opportunities for the lottery organization.

“We see a strong opportunity to apply our business model to a much larger operation and the potential to significantly improve its financial results through synergies that we are uniquely equipped to provide,” Reeves stated.