Evoke shares fell sharply on Wednesday as the William Hill and 888 owner warned of slowing revenue growth at the start of 2025.
The gambling group unveiled annual earnings at the top end of expectations, rising 4 per cent to £312.5million on revenue growth of 3 per cent to £1.75billion.
But exceptional items, including in relation to the sale of US consumer operations, meant the business recorded a bottom line loss of £168.8million.
Evoke, which had enjoyed a better than expected end to 2024, in undergoing a major turnaround strategy that sees the group re-focus its energies on core markets, and reduce costs by investing in AI and automation.
The group expects its first quarter revenue to grow in low single digit percentage, which is lower than its 5 to 9 per cent growth expected for the full-year, as measures to reign in gambling-related harm weigh.
Evoke said it was planning £15million to £25million of further cost cuts this year, which will offset the expected £10million headwinds from employer national insurance and national living wage hikes.
Evoke shares fell 17.3 per cent or 12.35p to 59.05p on Wednesday, having fallen over 33 per cent in the last year.
In the red: Evoke shares fell over 17% on Wednesday
Across Britain, the group saw retail sales fall 5 per cent last year despite growth in online operations.
Evoke said: ‘The decline in UK Retail primarily reflects a tougher competitive environment, with our gaming offering in particular having fallen behind competition.’
Betting revenue in Britain fell 1.3 per cent year-on-year, driven by an 11.5 per cent decline in staking.
Chief executive Per Widerström said it had been a pivotal year for the group following the launch of a turnaround strategy.
He said progress included a return to revenue growth in the third quarter for the first time in nearly three years.
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Widerström added: ‘When I become CEO of this fantastic company in October 2023, it was clear that the legacy 888 and William Hill businesses both held many key ingredients for success, each operating across dynamic and attractive markets, with strong proprietary technology, and boasting some of the industry’s most powerful betting and gaming brands.
‘However, the Group had not been performing at its full potential and significant changes were required.
‘We had to take decisive actions to completely reset our operating model and align it with our new strategy and Value Creation Plan.
‘We needed to develop new ways of working to drive operational excellence, and our plans had to be executed by a refreshed and highly committed leadership team. We are under no illusions: this is a complete reset of this business.’
The group’s redundancy costs for the year came in at £15.7million, amid a ‘high number of redundancies’ in 2024.
Several markets, including Britain, have been cracking down on betting companies in efforts to reign in gambling-related harm.
In November, the government capped the amount gamblers could stake on online Deposit Game Slot Pulsa 10rb Tanpa Potongan games, which are associated with large losses, long sessions, and binge play.
Evoke expects first-quarter core profit to rise by £18million to £28million from the prior year period, supported by cost-cutting measures.
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