William Hill owner Evoke has reported a huge post-tax loss as a predicted boost to profit after betting at the Euros failed to make any material impact on its results.
The firm, which owns William Hill, 888 and Mr Green, reported a post-tax loss of £143.2m in the six months to 30th June 2024, an increase of 341 per cent from £32.5m 2023.
The company reported revenue of £862m, down two per cent year over year but up four per cent in the second half of 2023.
The year-on-year decline was primarily driven by UK retail, including William Hill. Revenue here fell by eight per cent. Online revenue in the UK and Ireland rose one per cent, and international revenue was broadly flat.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell by 26 per cent to £116m, “driven by the reduced revenue [and] lower gross margin, primarily as a result of country and product mix changes, with the ongoing improvement in the sustainability and quality of the business mix”, the company said.
Evoke has been undergoing a “fundamental reorganis[ation]” which has already led to the replacement of nine out of 11 executive leadership roles and includes a drive to artificial intelligence. The company has said it would cost efficiency savings of £30m in 2024.
In comparison, Rival gaming giant Flutter has projected a 20 per cent year-on-year increase in group revenue and a 34 per cent rise in adjusted EBITDA by the end of 2024, largely due to demand from the US.
UK and Ireland revenue at Flutter also increased 17 per cent to $928m (£723) from £789m (£614m).
Per Widerström, CEO of William Hill owner Evoke, said: “As I said in our July trading update, while the financial performance in the first half was disappointing and behind our initial plan, the underlying health of the business is continually getting stronger.
“We are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid and long-term profitable growth and value creation,” Widerström added.
“We have a clear plan, vision and financial targets. As a result of our strategic progress and the enhancements already made to the business, I am even more confident about delivering our value creation plan and driving sustainable profitable growth over the coming years.”