Evoke Group presented its full-year 2025 results on April 30, 2026, revealing a significant profitability transformation despite modest revenue growth and mounting regulatory pressures in its core UK market.

The online gaming and betting operator reported adjusted EBITDA growth of 14% to £356 million, substantially outpacing its 2% revenue increase to £1.78 billion, as operational improvements drove margins to 20%.

The company’s FY25 performance reflected strategic progress in transforming its operating model, with CEO Per Widerström and CFO Sean Wilkins highlighting materially improved profitability despite external headwinds. Leverage declined from 5.7x to 5.2x, supported by earnings growth and disciplined capital allocation, while the company generated £188 million in underlying free cash flow.

However, the presentation acknowledged that UK duty changes represent a “significant headwind” requiring decisive action. Management committed to delivering “at least 50% mitigation” of the impact, focusing on cash generation and cost discipline as the company navigates a more challenging external environment.

International online revenue jumped 9% to £607 million, with particularly strong growth in Italy and Denmark. More impressively, International adjusted EBITDA surged 35% to £175 million, achieving a 28.9% margin. This performance reflected the benefits of exiting unprofitable US B2C operations, migrating customers to proprietary in-house platforms, and optimizing bonus structures to improve operating leverage.

UK&I online revenue declined 3% to £674 million, as William Hill’s performance was offset by declines in the 888 brand. Despite the revenue pressure, the segment delivered 6% EBITDA growth to £151 million through improved gross margins and marketing return on investment.

The retail segment proved most challenging, with revenue declining 1% to £501 million and EBITDA falling 17% to £55 million. While like-for-like sales grew 2% and gaming revenue increased 5% from new machines, these gains were overwhelmed by higher operating costs from National Insurance Contribution and National Living Wage increases, alongside ongoing shop closures.

Looking ahead, Evoke Group emphasized its improved operational momentum entering 2026, though Q1 trading results showed growth deceleration. The company’s focus on profitability over pure revenue growth represents a strategic shift, with management prioritizing margin expansion and cash generation.