Evoke has disclosed two significant uncertainties regarding its future as it navigates the proposed £243 million ($328.05 million) acquisition by Bally’s Intralot.
These uncertainties are directly linked to the acquisition process. Should the deal not materialize, Evoke has indicated that it must achieve a “sustainable and materially improved level of profitability and cash generation” to successfully refinance its debts, a task it has labeled a “significant execution challenge.”
The company currently holds approximately £1.8 billion ($2.43 billion) in debt, which includes £769 million ($1.04 billion) due by July 2028 and a £200 million ($270 million) revolving credit facility maturing in January 2028. The management team has described the existing debt as a “key constraint” if the acquisition fails.
CFO Sean Wilkins emphasized that the capital situation was a crucial factor in the board's endorsement of the acquisition. He stated, “The recommended acquisition provides a clearer path to a more sustainable capital structure, which was an important factor in the board’s unanimous recommendation.”
The second uncertainty for Evoke pertains to the future operations post-acquisition. Current directors have expressed concerns regarding Bally’s Intralot’s “ability and intentions to operate the group under its ownership.”
While Evoke acknowledged that these issues “may cast significant doubt” on its ability to continue as a going concern, the directors remain optimistic that the group possesses “adequate resources” to sustain operations through September 2027.
Bally’s Intralot announced the all-share acquisition of Evoke in June, with Evoke stating that this merger would establish a “global gaming and lottery champion.”
Robeson Reeves, CEO of Bally’s Intralot, has ruled out an immediate breakup of Evoke, asserting that the acquisition was pursued with the “whole group” in mind. The transaction is still pending regulatory and shareholder approvals, including a vote scheduled for August 17.
Evoke’s CEO, Per Widerström, confirmed that the approval process is on track, stating, “Progress with the relevant filings is going to plan, and we still expect to complete in the fourth quarter of 2026 or the first quarter of 2027.”
The announcement coincided with Evoke’s half-year results released on August 12, showing revenues of £887.5 million ($1.20 billion), slightly down from £887.8 million ($1.20 billion) the previous year. When accounting for the closure of 270 William Hill betting shops, the overall revenue showed a 2% increase.
Adjusted EBITDA fell by 9.5% year-over-year to £150.2 million ($202.77 million), while gross profit decreased by 6.8% to £552.4 million ($745.74 million) due to rising gaming duties and sales costs. Operating profit plummeted by 70.1% to £11.7 million ($15.80 million).
Online revenue from the UK and Ireland reached £348.1 million ($469.94 million), reflecting a 3.5% increase, bolstered by a 6.7% rise in gaming revenue and improved performance from William Hill. Conversely, 888’s revenue declined as the company focused on profitability and customer economics.
Despite the increased tax burden, adjusted EBITDA from the UK and Ireland online sector rose by 28%. Approximately £30 million ($40.50 million) of the £46 million ($62.10 million) rise in gaming duties originated from UK operations.
Wilkins noted that Evoke had managed to cut marketing expenses while still achieving business growth. “Our marketing year-on-year has dropped, but we have still managed to get that 4% growth. This has not just been a cost-cutting exercise,” he explained.
The retail division generated £245.6 million ($331.56 million) in revenue, down 2.6%, mainly due to store closures. Excluding closed shops, retail revenue increased by 4% on a like-for-like basis. Betting revenue fell by 3% as stakes dropped by 8%, while gaming revenue decreased by 2%.