William Hill owner Evoke published their annual financial report for 2025 this week.
It was a mixed bag of results, with a 2% year on year increase in total revenue. However, shrinkage in online sports betting profitability, as well as a downturn in UK retail profits, are a considerable cause for concern.
As, of course, is a pre-tax loss of £549 million… more than double the losses made in 2024.
Evoke’s CEO, Per Widerstrom, has blamed ‘black market penetration’ for the underperformance online, as well as blasting the UK government for the tax regime that will see William Hill close 270 high street betting shops in the weeks and months ahead.
Market Moves
Evoke, whose other brands include 888 and Mr Green, confirmed their results in a report published on Thursday.
They revealed a fifth consecutive quarter of growth, with a 2% overall increase compared to 2024, but with UK online revenue down 3% for the period.
According to the numbers, William Hill posted gaming growth, although the returns from 888 were less positive. And while operator-friendly results in 2024 contributed to the drawback in sports revenues last year, it’s noteworthy that Evoke have cited ‘black market penetration’ – particularly in horse racing – as another cause.
Meanwhile, their UK retail takings were down despite a 5% increase in gaming revenue, which was attributed to the roll-out of new machines in their high street properties from March 2025 onwards.
The insinuation then is that a number of shops struggled in terms of the volume, and revenue generated from, sports betting, which has perhaps been a contributory factor to the decision to close 270 shops in the UK – more on that shortly.
Signing off on the report, Evoke have revealed that their trading in the first quarter of 2026 has been ‘in line with management expectations’, with their UK online division ‘performing well’.
Of their performance last year and the group’s immediate outlook, Widerstrom commented:
“Throughout 2025, we delivered consistent operational progress resulting in a more efficient, focused and disciplined business, delivering improved marketing returns, stronger cost control, enhanced operating leverage and a step-change in underlying profitability.”
However, the CEO was quick to point to the gambling tax increases, revealed by the government in a bombshell budget in November, as a cause for some concern.
“The significant UK duty increases announced in November represented a fundamental shift in the economics of our largest market and will have a substantial impact across the regulated industry.”
Closed for Business
When Evoke completed an emergency strategic review of their operations in November, immediately after news of the tax hike broke, it became clear that shop closures were inevitable.
Initially, a rounded figure of 200+ closures was given, but this has now been made more exact in the annual report – and is worse than first feared.
It has been confirmed that circa 270 shops will close, with redundancies now almost an inevitability – although the exact figure of employees that will be transferred to different shops, and how many will lose their jobs entirely, is not known. Conservative estimates would suggest at least a few hundred will be lost.
As per the annual report, Evoke reveal:
“[a] completed review of retail estate, considering high street trading conditions and UK duty changes, resulting in decision to close c.270 shops that are no longer sustainable, which will deliver significantly improved retail profitability and enhance long-term sustainability.”
In Bally’s Court
Meanwhile, the financial reporting also touched upon the current takeover negotiations with Bally’s Intralot.
The Greco-American merger had opened talks with Evoke chiefs earlier this month, with City rules giving Bally’s a deadline date of May 18 to either make a formal bid or walk away from any such deal.
That comes after Evoke, as per their strategic review, concluded that either selling off individual brands – or facilitating an entire group sale – would be one way to maximise shareholder value in the wake of challenging market conditions in the UK.
A complete sale has become increasingly more attractive, with rumours suggesting that Bally’s is willing to pay 50p a share for the debt-laden group – valuing Evoke at around £225 million.
In their annual report, Evoke confirm that ‘discussions with Bally’s Intralot S.A. remain ongoing’, although it’s likely that no formal decision will be made until closer to that May 18 deadline.
“There can be no certainty that a firm offer will be made, nor as to the terms on which any such offer might be made. A further announcement will be made when appropriate,” Evoke have confirmed.