The owner of William Hill and 888Casino has released its offcial H1 2024 Interim Results to investors via the Evoke investor portal. (Images courtesy of Evoke PLC)
Formerly 888 Holdings PLC, the newly branded Evoke PLC still shows signs of instability.
The latest H1 2024 Interim Results are another blow to investors still hoping for the company to show signs of recovery under its new brand name.
For those invested in shares on the London Stock Exchange, the stock price has dipped throughout 2024 and is still well below 2023’s market opening price. Not a good look!
In the latest H1 report highlighted in the table below, shareholders have experienced a significant loss per share due to lower profits. Our financial writer, Luke Webber published his July 2024 Casinoplusbonus Gambling Shares Update, which echoes those declines.
In that report, Evoke’s share price was 58.30 GBX, which is -32.70 GBX (-35.93%) compared to January 2024’s market open price of 91 GBX. To make matters worse, if we go back to January 2023’s market open price of 84.60 GBX, the report shows a decline of -26.30 GBX (-31.09%).
In Evoke’s H1 2024 Interim Results, the Earnings Per Share (p) show a -6.7 pence decline. The revenue loss is to blame, which year-on-year comparisons with H1 2023 show a -£19.6m (-2.22%) decline in revenues mainly due to an 8% decrease in the UK Retail market, which would mostly mean William Hill high street betting stores.
With that being said, on a positive note, the report does mention that despite the more than 2% decline in year-on-year revenue, revenue is +4% sequentially on H2 2023. Also, it UK&I online revenue has increased 1%, while international revenues are described as ‘broadly flat’.
| Category | H1 2024 | H1 2023 | Notes |
|---|---|---|---|
| Revenue (£ millions) | 862.0 | 881.6 | Down 2% YoY; Up 4% sequentially on H2 2023 |
| Adjusted EBITDA (£ millions) | 115.5 | 155.6 | Down 26% YoY due to reduced revenues and lower gross margin |
| Adjusted EBITDA Margin | 13.4% | N/A | In line with July 2024 Trading Update |
| (Loss) / Profit After Tax (£ millions) | (29.9) | 11.8 | Large shift to loss due to exceptional items and lower EBITDA |
| (Loss) / Earnings Per Share (p) | (6.7) | 2.6 | Significant loss per share due to lower profits |
| Cash at 30 June 2024 (£ millions) | 116 | N/A | Adequate liquidity with nearly £300m total, including RCF |
| Marketing Expenses (£ millions) | Increased by 16 | N/A | Up 12% YoY; Online marketing ratio temporarily elevated to 25% |
| Cost Optimisation Program | £30 million | N/A | Full benefits expected in H2 2024 |
| Q3 Revenue Growth Target | 5-9% | N/A | Consistent with H2 2024 target range |
| H2 2024 EBITDA Margin Target | ~21% | N/A | Expected improvement driven by cost savings and enhanced marketing efficiency |
| FY25 Adjusted EBITDA Margin Target | ≥20% | N/A | Strategic goals include 5-9% annual revenue growth and 100bps EBITDA margin expansion per year starting in 2025 |
| Leverage Target by End of 2026 | <3.5x | N/A | Aim to reduce leverage to below 3.5x by end of 2026 |
Per Widerström, CEO of evoke, commented: We have a clear plan, vision and financial targets. As a result of our strategic progress and the enhancements already made to the business, I am even more confident about delivering our value creation plan and driving sustainable profitable growth over the coming years.”
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