Evoke Announces 3% Revenue Increase for Q3 2024, Reaching £417m ($544m): A Positive Turn in Growth

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Evoke Group has reported a 3% revenue increase for the third quarter of 2024, marking its first quarter of year-over-year revenue growth since early 2022. The company’s revenue for the quarter reached £417m ($544m), driven largely by gains in international markets and improvements in online operations. These results reflect the company’s strategic focus on key regions and initiatives to strengthen its core markets.

Despite challenges in its UK sports betting sector, the company has demonstrated resilience, underpinned by solid performance in Italy and Spain. Below, we provide a detailed analysis of Evoke’s Q3 2024 performance and its outlook for the remainder of the year.

International Markets Propel Growth

Evoke’s international markets were the primary growth driver for the company in Q3 2024. Revenue from international operations rose by 14%, with key regions like Italy and Spain seeing impressive gains.

Italy’s Strong Performance Boosts International Revenue

Italy, one of Evoke’s key markets, experienced a significant 31% revenue increase in constant currency. This exceptional performance was bolstered by the success of Evoke’s 888casino brand, which has now secured a leading position in the competitive online casino market. The company’s strategic marketing campaigns and tailored product offerings resonated well with Italian customers, positioning Evoke as a top player in the region.

Spain also contributed to Evoke’s success, delivering a 26% rise in revenue. The company’s consistent investment in its Spanish operations, coupled with its focus on delivering localized content and enhanced user experiences, has helped sustain growth in this market.

Evoke Expands in Romania with Acquisition of Winner.ro

One of the company’s strategic moves in 2024 was the acquisition of Winner.ro, a well-established Romanian online gaming operator. Following this acquisition, Romania has become a core market for Evoke, contributing to the 11% growth in online revenue from key regions. The company has leveraged Winner.ro’s strong local presence and brand recognition to tap into Romania’s expanding online gaming market. This acquisition is expected to further accelerate Evoke’s growth in Eastern Europe.

Online Operations See Steady Growth

The company’s online operations also posted an overall 8% increase in revenue during the third quarter, further cementing Evoke’s position as a leader in the online gaming space. Online growth was largely driven by the company’s international performance, with gaming revenue being a key contributor.

In addition to strong international growth, UK and Ireland’s online operations managed a 3% overall revenue increase. While Evoke faced challenges in the UK sports betting segment, the gaming sector posted a solid 12% increase, partially offsetting the decline in betting revenues.

Challenges in the UK Sports Betting Market

Despite Evoke’s overall positive performance, the UK segment presented challenges during the third quarter. Sports betting revenue in the UK declined by 13%, which the company attributed to customer-friendly football results in September. These unexpected outcomes impacted group revenue by £10m, marking a setback for the company in this key market.

To mitigate the impact of these challenges, Evoke is evaluating its sports betting strategy in the UK, with a focus on optimizing its market offerings and enhancing its customer engagement initiatives. The company remains confident that its diversified portfolio and strong international presence will help balance the performance of its UK operations.

Retail Operations Face Decline, But Recovery Plans Underway

Evoke’s retail operations reported a 9% drop in revenue during the third quarter, primarily due to lower-than-expected net win margins and market share losses in the gaming segment. The retail sector has been a challenging space for Evoke in 2024, as market dynamics and customer preferences continue to shift towards online platforms.

To address these challenges, Evoke’s newly appointed retail managing director has already begun implementing a comprehensive recovery plan. Central to this strategy is the rollout of 5,000 new gaming machines, which is expected to be completed by the first quarter of 2025. These machines are designed to enhance the customer experience and drive incremental revenue across the company’s retail outlets.

Outlook for H2 2024: Steady Growth Expected

Evoke has reiterated its guidance for the second half of 2024, maintaining a revenue growth target of 5-9%. This optimistic outlook is underpinned by strong growth in international markets and ongoing investments in both online and retail operations.

The company has also projected an adjusted EBITDA margin of approximately 21% for the second half, reflecting the company’s focus on maintaining profitability amid evolving market conditions. With a strong presence in key international markets and a robust online operation, Evoke is well-positioned to achieve its growth targets for the remainder of the year.

Conclusion: The Performance

Evoke’s Q3 2024 performance represents a turning point for the company, as it returns to year-over-year revenue growth for the first time since early 2022. Strong gains in international markets and online operations have offset challenges in the UK sports betting and retail segments, demonstrating the company’s resilience and strategic focus on growth opportunities.

FAQs About Evoke’s Q3 2024 Performance

1. What was Evoke’s total revenue for the third quarter of 2024?

Evoke reported a total revenue of £417m ($544m) for the third quarter of 2024, reflecting a 3% year-over-year increase.

2. When did Evoke last report year-over-year revenue growth?

Evoke’s Q3 2024 marks the first quarter of year-over-year revenue growth since the first quarter of 2022.

3. What drove the revenue increase in Q3 2024?

The revenue increase was largely driven by strong performance in international markets, particularly in Italy and Spain, as well as solid growth in online operations.

4. How did Evoke perform in its international markets?

Evoke saw a 14% revenue increase in its international markets, with Italy showing a 31% revenue increase in constant currency, and Spain reporting a 26% rise.

5. What is contributing to Evoke’s growth in Italy?

Evoke’s 888casino brand secured a leading position in Italy’s online casino market, driving a 31% increase in revenue in constant currency for the region.

6. How did the acquisition of Winner.ro impact Evoke’s performance?

The acquisition of Winner.ro in Romania significantly contributed to Evoke’s 11% growth in key online markets, with Romania becoming a core focus for the company.

7. How did Evoke’s UK sports betting segment perform in Q3 2024?

Evoke’s UK sports betting revenue declined by 13% due to customer-friendly football results, impacting the group revenue by £10m.

8. How did online operations perform for Evoke in Q3 2024?

Evoke’s online operations posted an 8% rise in revenue, driven by strong performance in international markets and a 12% growth in the UK and Ireland’s online gaming sector.

9. What challenges did Evoke face in its retail operations?

Evoke’s retail operations experienced a 9% drop in revenue due to lower-than-expected net win margins and market share losses in the gaming segment.

10. What steps is Evoke taking to improve its retail performance?

Evoke’s newly appointed retail managing director is rolling out 5,000 new gaming machines across its retail outlets, with completion expected by the first quarter of 2025.

11. What is Evoke’s revenue growth target for the second half of 2024?

Evoke has maintained a revenue growth target of 5-9% for the second half of 2024, with an adjusted EBITDA margin of approximately 21%.

12. What were the key factors that impacted group revenue in Q3 2024?

The key factors were strong international growth, especially in Italy and Spain, challenges in UK sports betting due to favorable football results for customers, and declines in retail operations.