Evoke H1 revenue hit by UK tax increases as Bally’s Intralot takeover edges closer

Evoke reported broadly flat revenue across H1 2026 as tax rises in the UK continued to impact performance ahead of its takeover from Bally’s Intralot. Revenue dropped slightly year-on-year to £887.5 million from £887.8 million in the same period of last year, while EBITDA fell 12% to £124.8 million.

The company was hit by a £46 million year-on-year increase in gaming duties, largely stemming from the UK’s increase in Remote Gaming Duty from 21% to 40% from 1 April this year. Adjusted EBITDA of £150.2 million was described as “in line with expectations” despite the tax headwinds.

Evoke said over half of the gross duty headwind was offset during H1 through lower but more efficient marketing spend, improved promotional efficiency and operational cost savings.

Regional Performance Shows Mixed Results

Evoke’s UK&I online revenue rose 4% with 7% growth in gaming, led by continued strong performance from William Hill. Adjusted EBITDA from the UK&I online segment increased 28% despite the regulatory challenges. However, revenue from 888 declined as Evoke focused on profitability and customer economics rather than pursuing lower-return volume.

International revenue slipped 2% despite growth in Italy (21%) and Denmark (13%). Spain, Romania and other “Rest of World” markets showed weaker performance. International adjusted EBITDA plummeted 20%, affected by increased duty rates in Romania and Italy.

Retail revenue grew 4% year-on-year on a like-for-like basis, aided by the 2025 rollout of gaming machines and improvements to SSBTs. However, reported revenue declined 3% due to a smaller retail estate. Evoke closed 200 William Hill shops in May 2026 alone, representing around 15% of its retail estate, leaving it with approximately 270 fewer shops compared to H1 last year.

Operational Resilience Amid Cost Pressures

CEO Per Widerström said Evoke’s operational improvements had positioned the business to withstand increased cost pressures. “The first half demonstrated the resilience of the business in a significantly more challenging operating environment following substantial increases in gaming duties introduced across some of our core markets, most notably in the UK,” he said.

“As a result of the significant operational improvements we have implemented across the business in recent years, coupled with the successful mitigation of a meaningful proportion of the increased duty costs, we have been able to maintain operational momentum, deliver like-for-like revenue growth, and protect profitability and cash generation,” Widerström added.

Takeover Timeline Remains On Track

In June, Bally’s Intralot announced an all-share takeover deal worth around £243.1 million for Evoke. The operator had launched a strategic review in December 2025, triggered in part by UK tax rises. The deal still requires shareholder and regulatory approvals but remains on track for completion in either Q4 2026 or Q1 2027.

Bally’s Intralot CEO Robeson Reeves has previously expressed confidence in Evoke’s Italian operations, stating: “Italy is one of the prized assets, probably one of the things I’d refuse to sell.”

Widerström said the company’s priorities “remained unchanged” until the takeover’s completion, with continued focus on customer service, colleague support, disciplined execution and strong cash generation. Evoke gave no forward financial guidance because of the proposed takeover.