Evoke (LSE:EVOK) delivered broadly stable first-half revenue in 2026, with online growth helping offset retail closures, but sharply higher UK gaming duties weighed on profitability as the group progresses towards its proposed acquisition by Bally’s Intralot.
Evoke revenue holds steady despite retail closures
First-half revenue came in at £887.5 million, broadly unchanged from the previous year on a reported basis.
On a like-for-like basis, excluding approximately 270 retail shops that have closed, revenue increased by 2%. UK and Ireland online gaming was a key contributor to growth, while performance across Evoke’s international markets was mixed.
The figures reflect the group’s ongoing shift towards digital operations as it reduces its physical retail footprint and directs investment towards higher-return areas.
Around 200 retail shops were closed in May as part of the restructuring, with Evoke focusing resources on locations it believes can deliver stronger long-term profitability.
Higher UK gaming duties cut adjusted EBITDA
Profitability came under greater pressure during the period, with adjusted EBITDA declining 10% to £150.2 million.
The main headwind was a £46 million increase in UK gaming duty costs following changes to the tax environment.
Management responded by tightening marketing expenditure, improving promotional efficiency and implementing additional cost savings. According to the company, these measures offset more than half of the increased duty burden.
The combination of higher taxation and increased one-off cash outflows left net leverage at 5.6 times, keeping balance-sheet strength an important issue for investors.
Evoke accelerates efficiency and AI investment
The company has adjusted its strategic priorities to reflect the new UK gaming duty framework, increasing its emphasis on operating efficiency and disciplined investment.
Alongside changes to the retail estate, Evoke is investing in data, automation and artificial intelligence as it looks to improve decision-making and operating performance across its online businesses.
The restructuring is intended to concentrate resources on Evoke’s stronger brands, digital operations and more profitable retail locations.
These initiatives may help mitigate some of the structural cost pressure created by higher gaming duties, although the first-half decline in adjusted EBITDA shows that the new tax environment remains a significant earnings headwind.
Bally’s Intralot acquisition moves towards completion
The proposed acquisition by Bally’s Intralot remains the most significant strategic development for Evoke.
The transaction followed a strategic review initiated by the Board in response to higher UK gaming duties and is progressing according to schedule.
Subject to shareholder and regulatory approvals, completion is expected between the fourth quarter of 2026 and the first quarter of 2027.
The proposed combination could provide Evoke with a stronger capital structure and increased certainty for shareholders and other stakeholders. Until the necessary approvals are secured, however, completion of the transaction remains a key outstanding catalyst.
Financial pressures remain despite operational resilience
Evoke’s financial position continues to present challenges despite the resilience of its underlying revenue and recent positive free cash flow.
Negative equity, continued net losses and elevated leverage remain important considerations, particularly as higher gaming duties put additional pressure on profitability.
Technical indicators provide some support, with the share price trading above key moving averages. Valuation remains more difficult to assess using conventional earnings measures because the group is loss-making, while the absence of dividend data provides limited additional support.
With the Bally’s Intralot transaction advancing, the investment case is increasingly tied to successful completion of the deal alongside Evoke’s ability to manage higher taxes and improve the efficiency of its remaining operations.
More about Evoke Plc
Evoke Plc is a Gibraltar-incorporated betting and gaming company listed in London. Its portfolio includes William Hill, 888 and Mr Green, with operations spanning online and retail betting and gaming markets including the UK, Italy, Denmark and Spain.
The group’s strategy focuses on sustainable profitable revenue growth, operating efficiency and disciplined capital allocation.
Evoke is investing in its brands, data capabilities, automation and AI while restructuring its UK retail network. The company has closed around 200 shops as part of efforts to improve the profitability and long-term sustainability of its remaining estate.
Focus keyphrase: Evoke H1 2026 results
Meta description: Evoke (LSE:EVOK) reports resilient H1 2026 revenue of £887.5m as higher UK gaming duties cut adjusted EBITDA, while the Bally’s Intralot acquisition advances.
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