- Q1 revenue up 1%
- Acceleration expected from Q2
- Full-year growth in the 5% to 9% range
Gambling and gaming firm Evoke (EVOK), formerly known as 888, said revenue for the first quarter to March grew 1% and reiterated expectations for an acceleration in growth from the second quarter onwards.
In support of its upbeat view, the Mr Green and William Hill brand owner noted that as of 22 April, revenue growth for the year had accelerated to approximately 4%.
Full-year revenue growth is expected to be consistent with the group’s mid-term target range of between 5% and 7%.
The shares briefly moved into positive territory before settling back to 47.8p, a fall of 0.3%.
WHAT THE COMPANY SAID
CEO Per Widerstrom commented: ‘While Q1 revenue was below our 5% to 9% annual growth target, adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) is significantly higher year-on-year, with last twelve months adjusted EBITDA reaching more than £330 million.
‘This reflects the group’s significantly more efficient operating model and our clear focus on creating value through sustainable, profitable growth.
‘Whilst the UK&I Online and Retail performance was behind where we wanted to be in Q1, we have moved swiftly to improve some of the underlying drivers of the performance and have been seeing stronger trends in April.’
By contrast, international markets continued double-digit revenue growth driven by strong performances in the group’s core markets with significant growth in Romania following the acquisition of Winner.ro.
SIGNS OF PROGRESS
Russ Mould, investment director at AJ Bell, commented: ‘There is enough in this latest statement to suggest CEO Per Widerström may be making some progress with his turnaround efforts at the gambling firm.
‘The company has also been upgrading its technology platform and online infrastructure – important background work which could yield results in the longer term.
‘Having retreated from the US market, after struggling to build sufficient scale across the Atlantic, Evoke is missing a growth driver enjoyed by some of its UK-listed peers,’ argued Mould.
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Martin Gamble) and the editor (James Crux) own shares in AJ Bell.
