Q2 2026 Evoke PLC Earnings Call

August 12, 2026

Per Widerström: Good morning, everyone, and thanks for joining us today for our H1 2026 results. I am Per Widerström, and I am joined today by Sean Wilkins, our CFO. Starting with the agenda on slide 2, the format today is deliberately short. I will begin with a brief overview of the context for today's presentation and the H1 performance. Sean will then take you through the financial results and cash flow in a bit more detail before we open the line for questions. Starting with slide 3, and before getting into the performance, I want to briefly discuss the recommended acquisition by Bally's Intralot, which we announced a little over 2 months ago. The announcement followed a comprehensive strategic review initiated by the board after the significant UK duty changes announced in November 2025.

Per Widerström: Good morning, everyone, and thanks for joining us today for our H1 2026 results. I am Per Widerström, and I am joined today by Sean Wilkins, our CFO. Starting with the agenda on slide two, the format today is deliberately short. I will begin with a brief overview of the context for today's presentation and the H1 performance. Sean will then take you through the financial results and cash flow in a bit more detail before we open the line for questions. Starting with slide three, and before getting into the performance, I want to briefly discuss the recommended acquisition by Bally's Intralot, which we announced a little over two months ago. The announcement followed a comprehensive strategic review initiated by the board after the significant UK duty changes announced in November 2025.

Speaker #1: Good morning, everyone, and thanks for joining us today for our first half 2026 results. I am Harvider Strum, and I'm joined today by Sean Wilkins, our CFO.

Speaker #1: Starting with the agenda on slide 2, the format today is deliberately short. I will begin with a brief overview of the context for today's presentation and the first-half performance.

Speaker #1: Sean will then take you through the financial results and cash flow in a bit more detail, before we open the line for questions. Starting with slide 3, and before getting into the performance, I want to briefly discuss the recommended acquisition by Ballis Intralot, which we announced a little over two months ago.

Speaker #1: The announcement followed a comprehensive strategic review, initiated by the Board after the significant UK duty changes announced in November 2025. Having evaluated the broad range of alternatives, the Board concluded that the recommended acquisition represented the most attractive and deliverable proposal available to Evoke and its shareholders.

Per Widerström: Having evaluated a broad range of alternatives, the board concluded that the recommended acquisition represented the most attractive and deliverable proposal available to Evoke and its shareholders. The acquisition remains subject to the relevant shareholder, regulatory, and other approvals, including our own shareholder vote next Monday, 17 August. I am pleased to tell you that progress with the relevant filings is going to plan, and we still expect to complete in Q4 2026 or Q1 2027. As a result, we are keeping today's presentation focused on the reported financial and operational performance. We are not providing a forward-looking financial guidance, and during the Q&A, we won't be able to add anything on the transaction beyond the information contained in the published announcement and other formal documentation. Operationally, our priorities are unchanged.

Speaker #1: The acquisition remains subject to the relevant shareholder regulatory and other approvals, including our own shareholder vote next Monday, the 17th of August. I'm pleased to tell you that progress with the relevant filings is going to plan, and we still expect to complete in the fourth quarter of 2026, with the first quarter of 2027.

Speaker #1: As a result, we are keeping today's presentation focused on the reported financial and operational performance. We are not providing forward-looking financial guidance, and during Q&A we won't be able to add anything on the transaction beyond the information contained in the published announcement and other formal documentation.

Speaker #1: Operationally, our priorities are unchanged. We remain focused on maintaining momentum, serving our customers, supporting our colleagues, meeting our regulatory obligations, and managing the business with discipline through the completion of the transaction.

Per Widerström: We remain focused on maintaining momentum, serving our customers, supporting our colleagues, meeting our regulatory obligations, and managing the business with discipline through the completion of the transaction. Turning to slide 4 and the H1 performance. This was a period that really demonstrated resilience of the underlying business in what was materially more challenging external environment in terms of increased duties in several of our core markets, and most notably in the UK. Group revenue was stable at GBP 888 million, and increased by 2% on a like-for-like basis, accounting for the 270 store closures versus the prior year. In terms of profitability, the H1 had a GBP 46 million year-on-year headwind from increased gaming duties. Against that backdrop, adjusted EBIT of GBP 150 million was down 10%.

Per Widerström: We remain focused on maintaining momentum, serving our customers, supporting our colleagues, meeting our regulatory obligations, and managing the business with discipline through the completion of the transaction. Turning to slide four and the H1 performance. This was a period that really demonstrated resilience of the underlying business in what was materially more challenging external environment in terms of increased duties in several of our core markets, and most notably in the UK. Group revenue was stable at GBP 888 million, and increased by 2% on a like-for-like basis, accounting for the 270 store closures versus the prior year. In terms of profitability, the H1 had a GBP 46 million year-on-year headwind from increased gaming duties. Against that backdrop, adjusted EBIT of GBP 150 million was down 10%.

Speaker #1: Turning to slide 4 and the first-half performance, this was a period that really demonstrated the resilience of the underlying business in what was a materially more challenging external environment in terms of increased duties in several of our core markets, and most notably in the UK.

Speaker #1: Group revenue was stable at £888 million, an increase of 2% on a like-for-like basis, accounting for the 270 store closures versus the prior year.

Speaker #1: In terms of profitability, the first half had a £46 million year-on-year headwind from increased gaming duties. Against that backdrop, adjusted EBITDA of £150 million was down 10%.

Speaker #1: While down £16 million year-on-year, the result also shows that the mitigating actions we set out early in the year are working and are offsetting a meaningful part of the duty impact.

Per Widerström: While down GBP 16 million year-on-year, the result also shows that the mitigation actions we set out early in the year are working and are offsetting a meaningful part of the duty impact. The Q2 saw a continuation of the Q1 trends we outlined at our full year results and Q1 update, with the strongest performance coming from UK and Ireland Online. Revenue grew 4% and adjusted EBIT increased 28%. This despite the additional duties kicking in from April. William Hill Vegas continues to perform very well, supported by the changes we have made to marketing, promotion investment, and customer value to produce better returns. Retail are also making good progress. Like-for-like revenue grew 4% and adjusted EBIT increased 5%, despite smaller estate and continuing inflationary cost pressure.

Speaker #1: The second quarter saw a continuation of the Q1 trends. We outlined that in our full-year results and Q1 update, with the strongest performance coming from UK and Ireland online.

Speaker #1: Revenue grew 4%, and adjusted EBIT increased 28%, despite the additional duties kicking in from April. William Hill Vegas continues to perform very well, supported by the changes we have made to marketing, promotion investment, and customer value to produce better returns.

Speaker #1: Retail is also making good progress. Like-for-like revenue grew 4% and adjusted EBIT increased 5%, despite a smaller estate and continuing inflationary cost pressures. The closure of structurally loss-making shops has improved the economics of the remaining estate, while trading following a machine rollout and improvements to self-service betting terminals has been encouraging.

Per Widerström: The closure of loss-making shops has improved the economics of the remaining estate, while trading following our machine rollout and improvements to self-service betting terminals has been encouraging. International was more mixed. Italy and Denmark continued to grow strongly, but that was offset by weaker revenue in Spain, Romania, and the rest of the world. Profitability was also affected by duty increases in Romania and Italy and by a greater proportion of revenue coming from higher duty markets. We had plans in place to address several of these areas. In Spain, for example, have made significant product improvements recently, although these had only a limited impact on the H1 results. Overall, the business has responded decisively to a substantial increase in our cost base. Our focus remains on the areas we control, commercial efficiency, cost discipline, cash generation, and consistent operational execution.

Speaker #1: International was more mixed. Italy and Denmark continued to grow strongly, but that was offset by weaker revenue in Spain, Romania, and the rest of the world.

Speaker #1: Profitability was also affected by duty increases in Romania and Italy, and by a greater proportion of revenue coming from higher duty markets. We had plans in place to address several of these areas, and in Spain, for example, we had made significant product improvements recently.

Speaker #1: Although these had only a limited impact on the first half results, overall, the business has responded decisively to a substantial increase in our cost base.

Speaker #1: Our focus remains on the areas we control: commercial efficiency, cost discipline, cash generation, and consistent operational execution. I'll now hand over to Sean to go through the financials.

Per Widerström: I will now hand over to Sean to go through the financials.

Speaker #2: Thanks, Per. Turning to slide 6, I'll take you through the financial performance for the first half in a bit more detail. Firstly, I'd say performance overall has been in line with our expectations, so it's been a decent start to the year, all things considered.

Sean Wilkins: Thanks, Per. Turning to slide 6, I will take you through the financial performance for the H1 in a bit more detail. Firstly, I would say performance overall has been in line with our expectations, so it has been a decent start to the year, all things considered. That said, the story continues to be mixed across markets and brands, driven by the actions we have been taking to drive growth and improve profitability. Total online revenue increased 1%. Within that, UK and I online grew 4%, with gaming up 7%. William Hill remained the key driver, particularly gaming, where William Hill Vegas continues to grow double digits and go from strength to strength. 888 revenue continued to decline as we maintained a deliberate focus on profitability and customer economics rather than pursuing low return volume. International revenue declined 2%, but the picture varied significantly by market.

Sean Wilkins: Thanks, Per. Turning to slide six, I will take you through the financial performance for the H1 in a bit more detail. Firstly, I would say performance overall has been in line with our expectations, so it has been a decent start to the year, all things considered. That said, the story continues to be mixed across markets and brands, driven by the actions we have been taking to drive growth and improve profitability. Total online revenue increased 1%. Within that, UK and I online grew 4%, with gaming up 7%. William Hill remained the key driver, particularly gaming, where William Hill Vegas continues to grow double digits and go from strength to strength. 888 revenue continued to decline as we maintained a deliberate focus on profitability and customer economics rather than pursuing low return volume. International revenue declined 2%, but the picture varied significantly by market.

Speaker #2: That said, the story continues to be mixed across markets and brands, driven by the actions we've been taking to drive growth and improve profitability.

Speaker #2: Total online revenue increased 1%. Within that, UK and I online grew 4%, with gaming up 7%. William Hill remained the key driver, particularly in gaming, where William Hill Vegas continues to grow double digits and go from strength to strength.

Speaker #2: 888 revenue continued to decline, as we maintained a deliberate focus on profitability and customer economics rather than pursuing low-return volume. International revenue declined 2%, but the picture varied significantly by market.

Speaker #2: Italy delivered another strong period, with revenue up 21%, and Denmark grew 13%. These performances were offset by declines in Spain, Romania, and the rest of the world.

Sean Wilkins: Italy delivered another strong period, with revenue up 21%, and Denmark grew 13%. These performances were offset by declines in Spain, Romania, and the rest of the world. In Spain, the improvements made to product and marketing are taking time to translate into the level of performance we want. Romania continues to be affected by the combination of a weaker economy, higher taxes, and the growth of the unregulated market. We have responded by managing marketing and promotional investment carefully to protect returns. Retail revenue declined 3% on a reported basis, reflecting the smaller estate with 270 fewer shops than the prior year. On a like-for-like basis, revenue increased 4%, supported by the continued strength of the gaming machines and improvements to self-service betting terminals, including 2,000 new ones being installed, leading to good underlying market share trends.

Speaker #2: In Spain, the improvements made to product and marketing are taking time to translate into the level of performance we want. Romania continues to be affected by the combination of a weaker economy, higher taxes, and the growth of the unregulated market.

Speaker #2: We have responded by managing marketing and promotional investment carefully to protect returns. Retail revenue declined 3% on a reported basis, reflecting the smaller estate with 270 fewer shops than the prior year.

Speaker #2: On a like-for-like basis, revenue increased 4%, supported by the continued strength of the gaming machines and improvements to self-service betting terminals, including 2,000 new ones being installed, leading to good underlying market share trends.

Speaker #2: Turning to adjusted EBITDA, the group delivered £150 million, down £16 million year-on-year, and broadly flat across the operating segments, excluding the increase in corporate costs.

Sean Wilkins: Turning to adjusted EBITDA, the group delivered GBP 150 million, down GBP 16 million year-on-year and broadly flat across the operating segments, excluding the increase in corporate costs, most of which is bonus accrual and balance sheet timing. This is despite the significant headwind of an additional GBP 46 million in gaming duty costs year-on-year. Our original guidance was that we would offset around half of that gross headwind. In the H1, we have actually offset more than half of the headwind, albeit the UK changes were only effective from 1 April. We have achieved this through lower but more productive marketing investment, improved promotional efficiency, and operational cost savings. You really see the impact of our mitigation efforts in the UK and Ireland Online adjusted EBITDA, which increased 28% despite the duty headwinds.

Speaker #2: Most of which is bonus accrual and balance sheet timing. This is despite the significant headwind of an additional £46 million in gaming duty costs year-on-year.

Speaker #2: Our original guidance was that we would offset around half of that gross headwind. In the first half, we've actually offset more than half of the headwind, albeit the UK changes were only effective from the 1st of April.

Speaker #2: We've achieved this through lower, but more productive, marketing investment, improved promotional efficiency, and operational cost savings. You really see the impact of our mitigation efforts in the UK and I online adjusted EBITDA, which increased 28%, despite the duty headwind.

Speaker #2: The full detail is in the appendix, but we have seen good savings across both marketing and operating costs, driving a much more efficient operation.

Sean Wilkins: The full detail is in the appendix, but we have seen good savings across both marketing and operating costs, driving a much more efficient operation. International is where we are more disappointed with the start to the year, with adjusted EBITDA down 20%. The reduction was driven primarily by the higher duty rates in Romania and Italy, the shift in revenue mix towards higher duty markets, and weaker revenue in several markets. While these external factors have compressed gross margin, it nevertheless remains the highest margin of the group segments, supported by leading positions in several attractive regulated markets. Retail adjusted EBITDA increased 5% despite the reported revenue decline and ongoing wage and cost inflation. The decision to close shops is never taken lightly. However, in the current external environment, it was necessary to address structurally loss-making locations.

Speaker #2: International is where we are more disappointed with the start to the year, with adjusted EBITDA down 20%. The reduction was driven primarily by higher duty rates in Romania and Italy, the shift in revenue mix towards higher duty markets, and weaker revenue in several markets.

Speaker #2: While these external factors have compressed gross margin, it nevertheless remains the highest margin of the group's segments, supported by leading positions in several attractive regulated markets.

Speaker #2: Retail adjusted EBITDA increased 5%, despite the reported revenue decline and ongoing wage and cost inflation. The decision to close shops is never taken lightly; however, in the current external environment, it was necessary to address structurally loss-making locations.

Speaker #2: The performance of the remaining estate demonstrates the benefits of concentrating resources on a more productive, short portfolio. Corporate costs increased to £26 million, with the largest drivers being staff bonus accruals—compared with no accrual in the prior year period—together with the timing of certain balance sheet movements. In both the prior year and current year, the bonus accrual will ultimately reflect the relevant full-year performance outcome.

Sean Wilkins: The performance of the remaining estate demonstrates the benefits of concentrating resources on a more productive shop portfolio. Corporate costs increased to GBP 26 million, with the largest drivers being staff bonus accruals, compared with no accrual in the prior year period, together with the timing of certain balance sheet movements in both the prior year and current year. The bonus accrual will ultimately reflect the relevant full year performance outcome. We are not commenting on current trading post-period end other than to say we continue to trade in line with our expectations. Clearly, one call-out worth making is on the World Cup, which was really successful from an operational point of view in terms of product delivery, commercial plans, and driving customer engagement. It also exceeded our revenue expectations and provided a good springboard as we go into the upcoming football season. Turning to slide seven and our cash flow.

Speaker #2: We're not commenting on current trading post-period end, other than to say we continue to trade in line with our expectations. Clearly, one call-out worth making is on the World Cup, which was really successful from an operational point of view in terms of product delivery, commercial plans, and driving customer engagement.

Sean Wilkins: We are not commenting on current trading post-period end other than to say we continue to trade in line with our expectations. Clearly, one call-out worth making is on the World Cup, which was really successful from an operational point of view in terms of product delivery, commercial plans, and driving customer engagement. It also exceeded our revenue expectations and provided a good springboard as we go into the upcoming football season. Turning to slide seven and our cash flow.

Speaker #2: It also exceeded our revenue expectations and provided a good springboard as we go into the upcoming football season. Turning to slide 7 and our cash flow, this is our usual bridge taking you from opening to closing cash, excluding customer balances.

Sean Wilkins: This is our usual bridge taking you from opening to closing cash, excluding customer balances. The business generated GBP 85 million of underlying free cash flow in the period, but with exceptionals and other one-off outflows, net debt increased by approximately GBP 37 million. Together with the lower LTM EBITDA, this meant the leverage was up to 5.6 times. Touching on a few of the key moving items. Working capital was a GBP 14 million inflow, primarily reflecting higher gaming duty accruals, with UK duty paid quarterly in arrears. CapEx of GBP 51 million was slightly front-loaded given the retail closure program and some of our product investment, and will continue to be disciplined in terms of capital allocation as we go through the year, ensuring we see sufficient ROI on our plans.

Speaker #2: The business generated £85 million of underlying free cash flow in the period, but with exceptionals and other one-off outflows, net debt increased by approximately £37 million.

Speaker #2: Together with the lower LTM EBITDA, this meant leverage was up to 5.6x. Touching on a few of the key moving items, working capital was a £14 million inflow, primarily reflecting higher gaming duty accruals.

Speaker #2: With UK duty paid coarsely in arrears, CapEx of £51 million was slightly front-loaded, given the retail closure program and some of our product investment. We'll continue to be disciplined in terms of capital allocation as we go through the year, ensuring we see sufficient ROI on our plans.

Speaker #2: Exceptional costs of £27 million include £5 million for the retail closure program and £7 million for the strategic review, as well as the ongoing integration and transformation program we've discussed before.

Sean Wilkins: Exceptional costs of GBP 27 million include GBP 5 million for retail closure program and GBP 7 million for the strategic review, as well as the ongoing integration and transformation program we have discussed before. Within other, this includes the repayment at par of the remaining GBP 11 million outstanding on the 2026 William Hill bonds, together with the ongoing CLB amortization of around GBP 2 million. We also paid GBP 11 million in relation to the historic Austrian gaming tax liability, where the final assessments have now been made, and the remaining balance is currently being paid at approximately GBP 2 million per month. At the period end, cash was GBP 106 million and the group had GBP 43 million of undrawn RCF capacity, giving total liquidity of approximately GBP 150 million. As Per said, we will be disciplined with our capital allocation and focused on cash generation and balance sheet strength as we move through to completion.

Speaker #2: Within other, this includes the repayment at par of the remaining £11 million outstanding on the 2026 William Hill bonds. Together with the ongoing TLB amortization of around £2 million, we also paid £11 million in relation to the historic Austrian gaming tax liability, where the final assessments have now been made and the remaining balance is currently being paid at approximately £2 million per month.

Sean Wilkins: We also paid GBP 11 million in relation to the historic Austrian gaming tax liability, where the final assessments have now been made, and the remaining balance is currently being paid at approximately GBP 2 million per month. At the period end, cash was GBP 106 million and the group had GBP 43 million of undrawn RCF capacity, giving total liquidity of approximately GBP 150 million. As Per said, we will be disciplined with our capital allocation and focused on cash generation and balance sheet strength as we move through to completion.

Speaker #2: At the period end, cash was £106 million, and the group had £43 million of undrawn RCF capacity, giving total liquidity of approximately £150 million.

Speaker #2: As Per said, we'll be disciplined with our capital allocation and focused on cash generation and balance sheet strength as we move through to completion.

Speaker #2: Finally, just to say, I think this slide and the increase in leverage really illustrates the constraints created by the group's existing capital structure, particularly following a significant increase in gaming duties.

Sean Wilkins: Finally, just to say, I think this slide and the increase in leverage really illustrates the constraints created by the group's existing capital structure, particularly following the significant increase in gaming duties. The board considered these constraints carefully as part of the strategic review, alongside the investment required to continue improving the operating performance of the business. The recommended acquisition provides a clearer path to a more sustainable capital structure, which was an important factor in the board's unanimous recommendation. With that, we will move to Q&A.

Speaker #2: The Board considered these constraints carefully as part of the strategic review, alongside the investment required to continue improving the operating performance of the business.

Speaker #2: The recommended acquisition provides a clearer path to a more sustainable capital structure, which was an important factor in the Board's unanimous recommendation. With that, we'll move to Q&A.

Speaker #1: Thank you. As a reminder, if you'd like to ask a question, please click the question box at the bottom of the webcast. Our first question today is from Ricardo Chinchilla at Deutsche Bank.

[Company Representative] (Evoke): Thank you. As a reminder, if you would like to ask a question, please click the question box on the bottom of the webcast. Our first question from today is from Ricardo Chinchilla at Deutsche Bank. UK and Ireland Online EBITDA increased 28% despite materially higher gaming duties. Could you quantify the contribution from revenue growth, marketing optimization, and operational efficiencies within that bridge? Secondly, International EBITDA declined 20%, while revenue was only down 2%. Which specific geographies contributed most significantly to the margin compression beyond Italy and Romania duty increases?

Speaker #1: UK and Ireland online EBITDA increased 28% despite materially higher gaming duties. Could you quantify the contribution from revenue growth, marketing optimization, and operational efficiencies within that bridge?

Speaker #1: And secondly, international EBITDA declined 20%, while revenue was only down 2%. Which specific geographies contributed most significantly to the margin compression beyond Italy and Romania, due to the increases?

Speaker #2: Thanks for that question. UK online EBITDA—obviously, we were very pleased with the performance there, adding £17 million year on year. The main places that came from, in spite of the headwinds of UK duty: we saw 4% revenue growth and we saw good operational gearing on that.

Sean Wilkins: Thanks for that question. UK Online EBITDA, obviously, we were very pleased with the performance there, adding GBP 17 million year-on-year. The main places that came from, in spite of the headwinds of UK duty, we saw 4% revenue growth, and we saw good operational gearing on that. We also, I think, did a very good job in the first half of mitigating the duty increases. The areas that we have really focused on to achieve those mitigations include significantly more effective marketing. Our marketing year-on-year has dropped, but we have still managed to get that 4% growth. That demonstrates the thing that we have been much more efficient. This has not just been a cost-cutting exercise. So we are very pleased with that as an outcome. The second thing basically focused on is retail closure.

Speaker #2: But we also, I think, did a very good job in the first half of mitigating the duty increases. And the areas that we've really focused on to achieve those mitigations include significantly more effective marketing.

Speaker #2: Now, our marketing year-on-year has dropped, but we've still managed to get that 4% growth. And that demonstrates, I think, that we've been much more efficient.

Speaker #2: This hasn't just been a cost-cutting exercise, so we're very pleased with that as an outcome. The second thing we're basically focused on is retail closure.

Sean Wilkins: We've shut 70 stores in Q4 last year, 200 stores in Q1 this year. They were all loss-making stores, so you can see in the results that retails are improved. We've improved the customer proposition, and we've also reduced our overhead. All of those things have added to or allowed us to mitigate the impact of the UK duty, and allowed us to achieve a good result in UK and Ireland Online. In international, I think the question's about margin compression. Where have we seen margin compression? I think there's been probably three key elements to this. The first is Italy duty, which we saw increase in November last year. The second is Romania duty, which took a step up from 21% to 30%.

Speaker #2: We've shut 70 stores in Q4 last year, and 200 stores in Q1 this year. They were all loss-making stores, and so you can see in the results that retail has improved.

Speaker #2: We've improved the customer proposition, and we've also reduced our overhead. So all of those things have added to, or allowed us to mitigate, the impact of the UK duty.

Speaker #2: And allowed us to achieve a good result in UK online. In International, I think the question's about margin compression. Where have we seen margin compression?

Speaker #2: I think there have probably been three key elements to this. The first is Italy duty, which we saw increase in November last year. Then the second is Romania duty, which took a step up from 21% to 30%.

Speaker #2: And I think the third thing that's driving margin compression is that we've seen a change in mix—of revenue to the higher duty, and therefore lower gross profit.

Sean Wilkins: I think the third thing that's driving margin compression is that we've seen a change in mix of revenue to the higher duty and therefore lower gross profit areas, particularly with the extremely strong growth in Denmark and Italy. Our volumes have moved over to the higher duty markets. Those three things are the things that are driving margin compression across the international business. I think we called out some more questions, didn't we, Josh?

Speaker #2: Areas, particularly with the extremely strong growth in Denmark and Italy. Our volumes have moved over to the higher duty markets, and those three things are the factors that are driving margin compression across the international business.

Speaker #2: I think Ricardo had some more questions, didn't he, Josh?

Speaker #1: Yeah. So next, William Hill Gaming remains a stand-out performer. What proportion of UK and Ireland growth is being driven by existing customer monetization versus new customer acquisition?

[Company Representative] (Evoke): Yeah. So next, William Hill Gaming remains the standout performer. What proportion of UK and Ireland growth is being driven by existing customer monetization versus new customer acquisition? How are cohort economics trending? Group AMAs declined 6% year on year, yet revenue remained broadly stable. To what extent are you consciously trading customer volumes for higher value and more profitable players?

Speaker #1: And how are cohort economics trending? Group AMA declined 6% year on year, yet revenue remains broadly stable. To what extent are you consciously trading customer volumes for higher value and more profitable players?

Speaker #2: So, first question: William Hill Vegas—is it coming from existing or new customers? To be honest, the truth is both, which is good news, obviously.

Sean Wilkins: So first question, William Hill Vegas, is it coming from existing or new customers? The honest truth is both, which is good news, obviously. It's been a good opportunity, but I know that the World Cup is a sports event, not a gaming event, but clearly, it's new customers to us, and that proved successful to us in terms of us recruiting new customers. Those customers certainly get cross-sold onto the gaming. So we've seen both improvements in existing cohorts and new customers. In terms of actives, yes, we have seen that decline across the group. I think a couple of things driving that. One is we saw some difficult performance across a couple of our markets, particularly Romania and Spain. Romania has been impacted by significant external events, the increase in duty leakage to the black market, plus economic negative growth.

Speaker #2: It's been a good opportunity. I know that the World Cup is a sports event, not a gaming event, but clearly it brought new customers to us, and that proved successful for us in terms of recruiting new customers.

Speaker #2: And those customers certainly get cross-sold onto the gaming. So, we've seen both improvements in existing cohorts and new customers. In terms of actives, yes, we have seen that decline across the group.

Speaker #2: I think a couple of things are driving that. One is we saw some difficult performance across a couple of our markets, particularly Romania and Spain. Romania has been impacted by significant external events.

Speaker #2: The increase in duty, leakage to the black market, plus economic negative growth—and Spain—continued to struggle with product there, although the product has improved significantly over the last quarter.

Sean Wilkins: And Spain continued to struggle with product there, although the product has improved significantly over the last quarter. So two reasons there why activity has gone down. But I think the third thing, and you alluded it to in the question is, we are working extremely hard, and we have been actually, it has been a key part of our strategy, to make sure that we are getting significant value from our players, and that we are driving ARPU, and that we are also driving margin within driving ARPU. And those things have been effective. We have had this strategy in place now for three years, and it is definitely paying dividend. And the inference in the question is, are we focused on driving higher value from existing players? And absolutely, of course, we are. Number one on our strategic pillars was always customer lifecycle management, and this is at the heart of customer lifecycle management.

Speaker #2: So, two reasons there why activities have gone down. But I think the third thing—and you alluded to it in the question—is we are working extremely hard, and we have been; actually, it’s been a key part of our strategy, to make sure that we’re getting significant value from our players.

Speaker #2: And that we're driving ARPA, and that we're also driving margin within driving ARPA. And those things have been effective. We've had this strategy in place now for three years, and it's definitely paying dividends.

Sean Wilkins: And those things have been effective. We have had this strategy in place now for three years, and it is definitely paying dividend. And the inference in the question is, are we focused on driving higher value from existing players? And absolutely, of course, we are. Number one on our strategic pillars was always customer lifecycle management, and this is at the heart of customer lifecycle management.

Speaker #2: And the influence in question is, are we focused on driving higher value from existing players? And absolutely, of course we are.

Speaker #2: Number one on our strategic pillars was always customer lifecycle management, and this is at the heart of customer lifecycle management.

[Company Representative] (Evoke): Indeed.

Speaker #1: Thank you.

Sean Wilkins: There is a fifth, is not there? Is there a fifth there?

Speaker #2: And then the fifth isn’t there? Is there a fifth there?

Speaker #1: Yes. Sportsbook stakes declined 9%, but sportsbook margin increased 60 basis points to 13.3%. How much of the margin expansion reflects favorable sporting outcomes versus structural improvements in pricing, product, and risk management?

[Company Representative] (Evoke): Yes. Sportsbook stakes declined 9%, but sportsbook margin increased 60 basis points to 13.3%. How much of the margin expansion reflects favorable sporting outcomes versus structural improvements in pricing, product, and risk management?

Sean Wilkins: Look, my view is there was not any particular sporting luck factor in this. We have intentionally been focused on the higher margin products, particularly accas and bet builders. We have very significantly improved the product that we have got, particularly in the UK, but also international around AKA and bet builder and higher margin products. And so it is no surprise to us at all that the margin on sportsbook has increased.

Speaker #2: Look, my view is that there wasn't any particular sporting luck factor in this. We have intentionally been focused on the higher-margin products.

Speaker #2: Particularly with Acres and Bet Builders, we've very significantly improved the product that we've got, particularly in the UK, but also internationally, around Acres and Bet Builder and the higher-margin products.

Speaker #2: And so it's no surprise to us at all that the margins on sportsbook have increased.

Speaker #1: Thank you. The next question is from David Brohan from Goodbody. Could you quantify the impact of the increased duties in Italy? And what is your view on potential future regulatory tax pressures in the UK, specifically the impact of FRAs and the proposal of increased MGD in retail?

[Company Representative] (Evoke): Thank you. The next question is from David Brohan from Goodbody. Could you quantify the impact of the increased duties in Italy? What is your view on potential future regulatory tax pressures in the UK, specifically the impact of FRAs and the proposal of increased MGD in retail?

Sean Wilkins: Why do I take the first part of that, and then I think Per is probably going to take the second part on the outlook for FRAs. Dave, we are not really talking about H2 and guidance, but I can tell you what the impact in the H1 was, and it was nearly a GBP 10 million impact on EBITDA to us. We have been public about GBP 46 million impact of duty changes. We think GBP 10 million of that came through the duty change. Per, do you want to comment on the FRAs?

Speaker #2: Why don't I take the first part of that, and then I think Per's probably going to take the second part on the outlook for FRAs.

Speaker #2: We're not really, Dave, we're not really talking about second half and guidance, but I can tell you what the impact in the first half was.

Speaker #2: And it was nearly a $10 million impact on EBITDA to us. We've been public about a $46 million impact of duty changes. We think $10 million of that came through the Italy duty change.

Speaker #2: Pear, do you want to comment on the FRAs?

Speaker #3: Yeah, someone can comment on that. So, the commission has announced the implementation of FRAs, and it has recently made that announcement.

Per Widerström: Yes, I can comment on that. The Gambling Commission has announced the implementation FRAs, and it has recently made that announcement. It is going to be implemented through a stage process, which we do expect to be kicked off in immediate short term. What the commission has initiated, which we very much are welcoming, is that it is creating implementation groups in order to engage operators like ourselves. We will obviously take an active part in working together with the Gambling Commission to make sure that whatever is coming out of the FRAs, it is proportionate. Also it is fit for purpose and future-proof on operational performance. Likewise, it is not going to have a detrimental impact from a customer experience and likewise, the regulated market. We are actively taking part and will take part in the development of FRAs in the UK market.

Speaker #3: It's going to be implemented through a staged process, which we do expect to be kicked off in the immediate short term. What the Commission has initiated, which we're very much welcoming, is that it's creating implementation groups.

Speaker #3: In order to engage operators like ourselves, and we will obviously take an active part in working together with the Gambling Commission to make sure that whatever is coming out of the FRAs is proportionate.

Speaker #3: And also, it is fit for purpose and future-proof on operational performance. Likewise, it's not going to have a detrimental impact on customer experience.

Speaker #3: And likewise, the regulated market. So, we are actively taking part, and will take part, in the development of FRAs in the UK market. But it will happen, and we are getting ready to introduce that.

Per Widerström: It will happen, and we are getting ready to introduce that.

Speaker #1: Thank you. Our next question is from Raman Narula from Principal Asset. Several, please. First, run-rate savings from store closures completed—how many more store closures anticipated?

[Company Representative] (Evoke): Thank you. Our next question is from Roman Narula from Principal Asset. Several, please. First, run rate savings from store closures completed. How many more store closures are anticipated? Second, last year saw WC outflow of circa GBP 51 million. Expect this to fully reverse this year and FY WC to be positive? Third, what percent of LTM revenue is Spain and Romania respectively?

Speaker #1: Second, last year saw WC outflow of circa 51 million. Expect this to fully reverse this year. And FYWC to be positive? And third, what percent of LTM revenue is Spain and Romania respectively?

Speaker #2: Okay. I mean, look, the place to look for run-rate savings on store closures is you can see that as much as our revenue has dropped out, EBITDA in Retail has improved by 5%.

Sean Wilkins: Okay. I mean, look, the place to look for run rate savings on store closures is you can see that much as our revenue has dropped, our EBITDA in retail has improved by 5%. That is the way that we think about it. What we have done is we have cut out loss-making stores, and that has meant that we are more profitable in spite of having lower revenue. The other point here is we have seen very strong like-for-like. If you forget the stores or ring-fence out the stores that we have shut, the like-for-like in the more profitable stores has been really strong. We have seen 4% like-for-like in retail, and that is significantly above the market. We are pleased with that. Working capital. Yeah, so positive working capital for the H1, which again, we are pleased with compared to last year. We are not giving forward guidance on cash flow.

Speaker #2: That's the way that we think about it. So, what we've done is we've cut out loss-making stores, and that's meant that we're more profitable in spite of having lower revenue.

Speaker #2: The other point here is, we have seen very strong like-for-like. So, if you forget the stores, or ring-fence out the stores that we've shut, the like-for-like in the more profitable stores has been really strong.

Sean Wilkins: If you forget the stores or ring-fence out the stores that we have shut, the like-for-like in the more profitable stores has been really strong. We have seen 4% like-for-like in retail, and that is significantly above the market. We are pleased with that. Working capital. Yeah, so positive working capital for the H1, which again, we are pleased with compared to last year. We are not giving forward guidance on cash flow.

Speaker #2: We've seen 4% like-for-like in retail, and that's significantly above the market, so we're pleased with that. Working capital—yeah, so positive working capital for the first half, which again, we're pleased with compared to last year.

Speaker #2: We're not giving forward guidance on cash flow. The one thing I would say, though, of course, is that your quarterly duty payments are paid quarterly in arrears.

Sean Wilkins: The one thing I would say, though, of course, is that your quarterly duty payments are paid quarterly in arrears. That increase in the quarterly payment in Q4 is going to be paid in Q1 following year. I would absolutely expect to see a good positive working capital number. LTM revenue in Spain and Romania is not really a level of detail I want to get into today. The next one was adjusted EBITDA. We covered that one. Josh, you about to read that one out. You go for it. You ask the next question.

Speaker #2: And so, that increase in the quarterly payment in Q4 is going—so I would absolutely expect to see a good, positive working capital number.

Speaker #2: LTM in Spain and LTM revenue in Spain and Romania is not really a level of detail I wanted to get into today. The next one was adjusted EBITDA.

Speaker #2: We covered that one, Josh. You're about to read that one out. You go for it. You ask the next question.

Speaker #1: The next question is from Joe Moxum from Chapstow Lane. On the international side, can you talk about the path to improving performance in some of the geographies—Spain and Rest of World perhaps; Romania perhaps a bit more obvious, given the duties?

[Company Representative] (Evoke): The next question is from Joe Moxham from Chepstow Lane. On the international side, can you talk about the path to improving performance in some of the geographies, Spain and rest of world perhaps? Romania perhaps is a bit more obvious given the duties.

Per Widerström: Let me start with that one, Sean, then you can chip in. As we called out before, we do see mixed performance when it comes to international markets, but very satisfied what we see in the core markets of Italy and Denmark. As we called out, there is some weakness in Spain and Romania, and we do have plans to address that. When it comes to Spain in particular, and Sean called that out as part of the presentation, is that we have some product issues related to the sports side. That said, since beginning of the year, we have scaled up the investment behind our products, both sports and gaming in Spain. We have seen a good response from a customer's perspective when it comes to the new William Hill app that we have launched.

Speaker #3: Let me start with that one, Sean, and then you can chip in. But as we called out before, we do see mixed performance when it comes to international markets.

Speaker #3: But very, very satisfied with what we see in the core markets of Italy and Denmark. And as we called out, there's some weakness in Spain and Romania.

Speaker #3: And we do have plans to address that. When it comes to Spain in particular—and Sean called that out as part of the presentation—we have some product issues related to the sports side.

Speaker #3: That said, since the beginning of the year, we have scaled up the investment behind our products, both Sports and Gaming, in Spain. We have seen a good response from a customer’s perspective when it comes to the new William Hill app that we have launched.

Speaker #3: And there's further improvement to come on the product proposition when it comes to Spain for the year to go. We have, in fact, moved some resources from the UK in order to further scale up and accelerate the product and tech roadmap for Spain.

Per Widerström: It is further improvements to come on the product proposition when it comes to Spain for year to go. We have in fact moved some resources from the UK in order to further scale up and accelerate the product and tech roadmap for Spain. We also have implemented in H1 related to Spain in terms of marketing improvements, including also customer cycle management improvements, which is yet to be seen coming into effect. We expect that to happen in H2. In terms of Romania, we do see that this is an overall weak market and in particular hit by the increased taxation. We are absolutely focused on making sure that we are preserving the cash and liquidity in all the markets, including Romania. That is what we continue to do by, of course, continue to focus on the product and the customer position to the customer.

Speaker #3: We have also implemented, in H1, improvements related to Spain in terms of marketing, including customer management improvements, which are yet to be seen coming into effect.

Speaker #3: We expect that to happen in H2. In terms of Romania, I mean, we do see that this is an overall weak market, and in particular, it has been hit by the increased taxation.

Speaker #3: We are absolutely focused on making sure that we are preserving cash and liquidity in all the markets, including Romania. So that is what we continue to do by, of course, continuing to focus on the product and the customer, and maintaining our position to the customer.

Speaker #3: In terms of the rest of the world, I think the key message here is that we are absolutely focused on when it comes to profitable growth and when it comes to cash flow preservation.

Per Widerström: The rest of the world, I think the key message here is that we are absolutely focused on when it comes to profitable growth and when it comes to cash flow preservation. Rather than invest in the markets where we have a higher return on investment.

Speaker #3: So rather than invest in the markets where we have a higher return on investment.

Speaker #1: Thank you. Our next question is from Monica Reacher at JPMAM. Can you give us a sense of the impact of the World Cup on the top line?

[Company Representative] (Evoke): Thank you. Our next question is from Monika Richa at J.P. Morgan Asset Management. Can you give us a sense of the impact of the World Cup on the top line? How has Q3 trading been so far?

Speaker #1: How has Q3 trading been so far?

Speaker #2: So, yeah, you go for it.

Per Widerström: So-

Sean Wilkins: You go, Per.

Per Widerström: Yeah, I can go. Thank you. We are not giving any specific financial figures related to World Cup, but Sean called it out, and we called it out in the presentation that we are really pleased with the operational and the commercial execution of what we delivered to the customer during the World Cup. By the way, fantastic tournament, I must say. We have seen a customer engagement that was over-performing versus the expectations we set out before the tournament started, and that also follows an over-performance when it comes to revenue projections. What we did see also was that when it comes to the group stage results, which is of course part of the H1 results we call out today, the results were a bit more customer-friendly in June, while we saw that in the knockout stages, it was a bit more operator-friendly, obviously less games.

Speaker #3: I can go. Thank you. So, we are not giving any specific financial figures related to the World Cup, but Sean called it out, and we called it out in the presentation, that we are really pleased with the operational and the commercial execution of what we delivered to the customer during the World Cup.

Speaker #3: By the way, a fantastic tournament, I must say. And we have seen customer engagement that was overperforming versus the expectations we set out before the tournament started.

Speaker #3: And that also follows an overperformance when it comes to revenue projections. What we did see also was that when it comes to the group stage results, which is of course part of the H1 results we call out today, the results were a bit more customer-friendly in June, while we saw that during the knockout stages it was a bit more operator-friendly.

Speaker #3: Obviously, there were fewer games, but overall I'm very, very happy with the performance by the team, delivering a great customer experience to our customers during the World Cup.

Per Widerström: But overall, very, very happy with the performance by the team, delivering great customer experience to the customers during the World Cup. As I said, we are not giving any financial forward-looking outline, but what we can say, we are performing to expectations when it comes to where we stand today.

Speaker #3: And, as I said, we are not giving any financial forward-looking outline, but what we can say is that we are performing to expectations when it comes to where we stand today.

Speaker #1: Thank you. As a reminder, if you'd like to ask a question today, please use the questions button in the toolbar below. Our next question is from Connor Porter from SVC.

[Company Representative] (Evoke): Thank you. As a reminder, if you would like to ask a question today, please use the Questions button in the toolbar below. Our next question is from Connor Porter from SVC. Adjusted EBITDA was impacted by GBP 46 million year-on-year increase in gaming duties, predominantly in the UK. How much or what percentage of the GBP 46 million figure was from the UK exactly? How close is this to initial estimates?

Speaker #1: Adjusted EBITDA was impacted by a £46 million year-on-year increase in gaming duties, predominantly in the UK. How much or what percentage of the £46 million figure was from the UK exactly?

Speaker #1: How close is this to initial estimates?

Speaker #2: So, well, two-thirds of it was from the UK. So, the UK was £30 million of that £46 million. I've already told you that Italy was circa 10, which means the rest is really from Romania.

Sean Wilkins: Well, two-thirds of it was from the UK. So UK was GBP 30 million of that GBP 46 million. I have already told you that Italy was circa GBP 10 million, which means the rest is really from Romania. In terms of it being close to estimates, I think we are pretty well spot on. It is not an enormously difficult thing to work out. So, our estimates were pretty well bang on there. The other thing that is just worth saying when you are thinking about this, clearly the UK only had one additional quarter within the half of increased duty.

Speaker #2: In terms of it being close to estimates, I mean, I think we're pretty well spun. It's not an enormously difficult thing to work out.

Speaker #2: So our estimates are pretty well bang on there. The other thing that's just worth saying when you're thinking about how to when you're thinking about this, clearly the UK only had one additional quarter within the half of increased duty.

Speaker #1: Thank you. At this moment, we have no further questions, so I'll hand back to the management team for closing remarks.

[Company Representative] (Evoke): Thank you. At this moment, we have no further questions, so I will hand back to the management team for closing remarks.

Speaker #3: Thank you so much. To close, then, the first half demonstrated the resilience that we've shown in the materially more challenging operating environment. Despite significant increases in gaming duties, particularly in the UK, we acted decisively to maintain operational momentum and deliver like-for-like revenue growth, while protecting profitability and cash generation.

Per Widerström: Thank you so much. To close, then, the H1 demonstrated the resilience of Evoke in a material more challenging operating environment. Despite significant increases in gaming duties, particularly in the UK, we act decisively, maintain operational momentum, and deliver the like-for-like revenue growth and protect the profitability and cash generation. Following the board's strategic review, we believe the recommended acquisition by Bally's Intralot represents the most attractive and deliverable outcome for shareholders, this while providing the business with a stronger long-term capital structure. Until completion, let us be clear, our focus remains unchanged, serving our customers, supporting our colleagues, and executing with discipline, and continue to generate strong cash flow. I would like to thank you all for your time today and for your questions today. Have a good day.

Speaker #3: Following the Board's strategic review, we believe the recommended acquisition by Ballis Intralot represents the most attractive and deliverable outcome for shareholders, while providing a stronger long-term capital structure.

Speaker #3: Until completion, let's be clear: our focus remains unchanged—serving our customers, supporting our colleagues, executing with discipline, and continuing to generate strong cash flow.

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