Evoke’s Successful Strategy Shift Drives Profit Growth in First Half of 2025

Evoke Reports Strong Profit and Growth in H1 2025

Evoke PLC has delivered impressive financial results in the first half of 2025, marking its fourth consecutive quarter of growth. This progress largely stems from a strategic pivot focused on expanding its presence in international markets and enhancing operational efficiency.

Profit Growth Driven by International Markets Despite UK Challenges

For the six months ending June 30, Evoke’s revenue increased by 3% year-over-year, reaching �GBP 887.8 million (approximately $1.2 billion). Adjusted EBITDA surged by 44% to GBP 165.9 million ($225 million), elevating the EBITDA margin to 18.7% compared to 13.4% last year.

The company also reduced its pre-tax loss significantly, from GBP 147 million ($199 million) down to GBP 77.7 million ($105 million). Additionally, Evoke reported an adjusted pre-tax profit of GBP 12.6 million ($17 million), reversing last year’s losses. This improvement was supported by tight expense control, with operating costs declining by 14% and marketing expenses cut by nearly 8%, all while continuing to invest in product enhancements.

International markets notably contributed to this performance. Revenues from key countries including Italy, Spain, Denmark, and Romania rose by more than 20% on a constant currency basis, doubling the profits generated from these regions.

Meanwhile, online revenue from the UK and Ireland dipped slightly by 1%, impacted by the absence of major soccer events compared to the previous year and reduced marketing expenditures. Nevertheless, this segment still achieved a 37% increase in profits. Physical store revenues saw a minor decline of 2% overall but rebounded in the second quarter after deploying 5,000 new gaming machines, which boosted revenue per machine by 15%.

CEO Highlights Transformation Plan as Key to Ongoing Success

CEO Per Widerstr�m emphasized that the company’s transformation plan has been instrumental in driving these positive outcomes. The initiative concentrated on prioritizing profitable markets while exiting less lucrative ones, including the US B2C segment. Key advances in automation, AI-driven customer engagement, and platform integration played crucial roles in enhancing profitability and customer experience.

Widerstr�m also noted that sustaining four consecutive quarters of growth positions Evoke well to maintain momentum in the latter half of 2025. The introduction of new products combined with operational improvements are expected to further support this trajectory.

Evoke reaffirmed its full-year guidance, anticipating revenue growth between 5% and 9%, alongside an adjusted EBITDA margin of at least 20% for 2025. The company also reiterated its medium-term objectives, targeting consistent annual revenue growth in the same range, an approximate 1% increase in EBITDA margin annually starting in 2025, and maintaining debt levels below 3.5 times EBITDA by the end of 2027.