Evoke (LON:EVOK) Releases Earnings Results

Evoke (LON:EVOK) posted its quarterly earnings data on Wednesday. The company reported GBX (0.40) EPS for the quarter, Digital Look Earnings reports. Evoke had a positive return on equity of 125.82% and a negative net margin of 30.73%.

Here are the key takeaways from Evoke’s conference call:

• Recommended Bally’s Intralot acquisition remains on track, subject to shareholder, regulatory, and other approvals, with completion expected in Q4 2026 or Q1 2027; the company is not providing forward-looking financial guidance.
• First-half revenue was broadly stable at £888 million, but adjusted EBITDA fell 10% to £150 million after a £46 million year-on-year increase in gaming duties, including approximately £30 million from the U.K.
• UK & I Online revenue rose 4% and adjusted EBITDA increased 28%, driven by stronger marketing and promotional efficiency, operational savings, and continued double-digit growth at William Hill Vegas. Retail like-for-like revenue grew 4% and EBITDA rose 5% despite closing 270 loss-making shops.
• International adjusted EBITDA declined 20% as higher duties in Italy and Romania, a shift toward higher-duty markets, and weaker performance in Spain and other regions compressed margins. Management is increasing product investment in Spain while restricting spending in weaker markets such as Romania to preserve returns and liquidity.
• The group generated £85 million of underlying free cash flow, but exceptional and other outflows caused net debt to rise by about £37 million and leverage to increase to 5.6x; period-end liquidity was approximately £150 million.

Evoke Stock Up 0.2%

Shares of LON EVOK traded up GBX 0.10 during trading on Wednesday, reaching GBX 45.60. 314,332 shares of the company traded hands, compared to its average volume of 4,031,571. The firm has a 50 day simple moving average of GBX 45.64 and a 200-day simple moving average of GBX 36.70. Evoke has a 52-week low of GBX 19.76 and a 52-week high of GBX 66.40. The stock has a market capitalization of £205.26 million, a PE ratio of -0.37 and a beta of 1.00.

Analysts Set New Price Targets

A number of research firms have recently commented on EVOK. JPMorgan Chase & Co. increased their target price on Evoke from GBX 34 to GBX 52 and gave the stock a “neutral” rating in a research note on Tuesday, June 16th. Berenberg Bank lifted their target price on Evoke from GBX 33 to GBX 52 and gave the stock a “hold” rating in a report on Tuesday, June 16th. Three investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of GBX 46.33.

About Evoke