Shares in betting and gaming company Evoke (EVOK) fell 10% after the firm withheld earnings guidance for 2026. The board said it was ‘not appropriate’ to provide an outlook given it was conducting a strategic review of the business.
| Share price: 24.65p (-10%) | PE: 2.4x |
| Market Cap: £115m | Yield: n/a |
UK TAXATION HEADWINDS
As announced on 10 December 2025, Evoke is reviewing its strategic options in order to ‘maximise shareholder value’. The decision comes after the shares lost around two thirds of their value between 1 January and early December.
The board has blamed UK taxation of the regulated gaming industry for having a negative impact on the business. It claimed last November’s Budget in particular ‘dealt a significant blow’ to the firm and the wider sector.
Options included in the review are selling some of the group’s assets or a wholesale disposal of the business. Evoke owns the William Hill, 888 and Mr Green brands and operates in the UK, Italy, Spain and Denmark.
In terms of recent trading, Q4 revenue was down 3% at £464 million due to a strong prior-year comparative period. Gaming revenue was up 9% with growth in both the UK and abroad, but betting revenue fell 22%.
FY25 revenue is seen up 2% at £1.78 billion, while EBITDA is seen up 14%-15% at £355 million to £360 million. That would put earnings in line with market expectations and the firm’s previous guidance.
CEO Per Widerstrom said Evoke had made ‘good progress’ against its strategic plans, ‘demonstrating the underlying momentum of the business’. However, due to ‘significant’ UK tax increases it had to assess its options to maximise returns for its investors.
We aren’t fans of the betting and gaming sector for a number of reasons, the UK tax regime being one of them. Therefore, Evoke doesn’t float our boat, but for short-term traders there is no doubt some speculative appeal.
If the board is trying to attract buyers for bits or all of the business, withholding guidance isn’t the best move. We get it’s hard to forecast the future but some kind of steer would surely be better than none.
Read the press release here: https://www.evokeplc.com/investors/
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