Evoke Warns of Lower-Than-Expected 2025 Revenue as Strategic Review Clouds Outlook

British gambling group Evoke said on Tuesday that its full-year 2025 revenue is expected to fall short of market expectations and declined to issue any guidance for 2026, pointing to an ongoing strategic review that could ultimately lead to a sale of the business. The update rattled investors, sending the company’s shares down by as much as 12% during the trading session.

The owner of William Hill and 888 said it now expects revenue for 2025 to be about £1.79 billion ($2.47 billion), representing a 2% increase from the previous year but below the £1.84 billion ($2.54 billion) average forecast from analysts. Evoke also reported that fourth-quarter revenue declined 3% to roughly £464 million ($639.84 million), which it attributed to more favorable sports betting outcomes for operators during the same quarter in 2024.

For the year ended December 31, Evoke said adjusted earnings before interest, tax, depreciation, and amortization are expected to land between £355 million ($489.53 million) and £360 million ($496.43 million). While that range would mark a 14% increase year on year, it still falls short of the company’s previous guidance of more than £362 million ($499.19 million).

The company’s shares were trading at around 25 pence on Tuesday, valuing Evoke at a market capitalization of approximately £132 million ($182 million). The stock has dropped by more than a third since November, when UK Chancellor Rachel Reeves increased online betting duties and remote gaming taxes in the national budget. Over the past five years, Evoke’s share price has fallen by more than 90%.

Evoke has yet to confirm when it will publish its audited 2025 financial statements but said the results would be released “in due course.”

Chief Executive Per Widerström said the company had acted swiftly in response to the higher tax burden. “We have moved quickly and decisively to execute on our mitigation plans, including the closure of retail stores that are no longer sustainable as well as broader cost savings,” he said. “An updated strategic plan will be shared in due course.”

The group initiated a strategic review in December following the budget announcement, with options under consideration including a full or partial sale of the business. Around two-thirds of Evoke’s revenue is generated in the UK, making it more vulnerable to domestic regulatory and tax changes than larger, more geographically diversified rivals such as Flutter and Entain.

In a note to clients, Berenberg analyst Jack Cummings said: “We continue to regard this (strategic review) decision as logical given the debt stack, but the eventual outcome of the strategic review remains uncertain.”

Broker Peel Hunt also cut its rating on the stock from “buy” to “under review” on Tuesday. Analyst Ivor Jones said the company needed “material change” to confront its financial and operational difficulties.

Reports last week indicated that casino operator Bally’s and British bookmaker Betfred were considering potential bids for Evoke’s retail assets. The company had previously warned, in a statement released on the evening of the UK budget, that the higher tax regime could increase its annual costs by between £125 million ($172.37 million) and £135 million ($186.16 million) from 2027 unless mitigating actions are taken.

Evoke reported a pre-tax loss of £168.8 million ($232.77 million) for 2024, underscoring the scale of the challenges facing the group as it weighs its strategic options.

By fLEXI tEAM