Evoke’s CEO, Per Widerström, recently highlighted that the company would be closing some retail stores as a response to the UK’s rising tax rates. He explained that these assets were “no longer sustainable as well as broader cost savings,” signaling a strategic shift in how the company is managing its assets and operations amid the challenging tax environment. Evoke UK Retail Closures
Looking ahead, Evoke remains optimistic about its financial targets for 2025. The company announced that it expects to meet its revenue and adjusted EBITDA goals, even as it continues to evaluate options for a potential sale of certain parts of its business. In its quarterly update released on Tuesday, Evoke reported that its full-year revenue for the period ending December 31, 2025, stood at £1.79 billion ($2.44 billion). This figure represents a modest 2% increase from the previous year and aligns with the company’s forecasts.
Evoke also projected an adjusted EBITDA between £355 million and £360 million, marking a 15% rise from FY’24. The growth underscores Evoke’s focus on profitable expansion and the cost-saving measures it implemented during 2025, the company stated.
The year’s performance was buoyed by a strong fourth quarter, during which revenue reached £464 million, according to the company’s estimates. While this reflects a 3% decline compared to the same period the previous year, the quarter still demonstrated positive momentum. Evoke’s gaming revenue during Q4 increased by 9% year-on-year, driven by growth across all divisions. Retail gaming revenue grew 10%, and international gaming revenue surged 14%. Conversely, betting revenue fell by 22%, primarily due to favorable sporting results for operators in the prior year.
Evoke’s CEO praised the quarter’s results, stating, “During Q4 we made good progress against our strategic plans, delivering our best quarter of the year and demonstrating the underlying momentum in the business.” He added that the company’s core markets, particularly Italy and Denmark, delivered record quarterly revenues in Q4, and this positive trend continued into 2026 with solid growth across all divisions.
On the strategic front, Evoke provided an update regarding its ongoing review of a potential sale of the business or parts of it. In December, the company announced it was conducting a strategic review to explore various options, including a full or partial sale. The review remains active, and Evoke clarified that it was too early to offer any specific financial guidance. Widerström noted that this review is part of the company’s response to the recent increase in UK gambling taxes, which include a rise in Remote Gaming Duty to 40% from April-up from 21%-and the introduction of a new 25% general betting duty for remote betting in April 2027, up from 15%.
Evoke has been vocal about the damaging impact of these tax hikes. Widerström described the increases as “highly damaging” for the UK economy and players. As part of its efforts to adapt, the company announced the planned closure of several retail stores, deeming these assets “no longer sustainable as well as broader cost savings.” He promised that shareholders would be kept informed about progress and strategic updates in due course.
Despite the positive strides made in 2025, Widerström expressed disappointment over the UK’s November budget, which he said dealt a “significant blow” to Evoke and the wider regulated industry. He voiced concerns that the tax hikes would negatively influence the industry’s economic contribution, harm customer protection, and potentially bolster the illegal black market. Consequently, the board is actively considering strategic options aimed at maximizing shareholder value.
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There have also been reports suggesting Evoke may be exploring the sale of its Italian operations. A Sky News report from November indicated that Evoke had appointed Morgan Stanley to evaluate options for selling its Italian business, which could potentially generate “hundreds of millions of pounds” to offset the impact of UK tax increases. Evoke did not comment publicly at that time, but Widerström confirmed in this week’s update that the company had moved swiftly to implement mitigation plans, including closing unviable retail stores and pursuing broader cost savings. Evoke UK Retail Closures
