Evoke Q3 Revenue Falls 7% as Bally’s Intralot Deal Stays on Track

Evoke plc reported unaudited group revenue of £406 million for the three months ended 30 September 2026, a decrease of 7% on a reported basis, in its Q3 2026 trading update published on 23 October 2026. The William Hill and 888 owner also said its recommended acquisition by Bally’s Intralot remains on track, with completion expected late in the fourth quarter of 2026 or early in the first quarter of 2027.

Third-Quarter Trading

Revenue fell 2% on a like-for-like constant currency basis, which excludes the impact of approximately 270 fewer retail shops compared with the prior-year period, the company said. Sports results that were particularly customer-friendly at the beginning of the football season were an approximately 1-2 percentage point headwind to year-over-year group revenue growth, meaning revenue was broadly stable on a normalised basis.

Constant currency growth is calculated by translating both current and prior year performance at 2026 exchange rates. The like-for-like basis adjusts the prior year for the effect of closed stores, while the normalised basis reflects expected sports margins year-over-year to remove the impact of customer-friendly or operator-friendly results.

Evoke owns and operates brands including William Hill, 888 and Mr Green. The group is incorporated in Gibraltar and is headquartered and listed in London.

Duty Increases and First-Half Results

Chief executive Per Widerström said: “On an underlying basis the business continues to show resilience and reflects our continued emphasis on profitability and cash generation following the substantial increases in gaming duties, particularly in the UK.”

The UK Government announced on 26 November 2025 that Remote Gaming Duty would increase from 21% to 40% with effect from April 2026, and that the duty rate on online betting, excluding horse racing, would increase from 15% to 25% from 1 April 2027, according to the recommended acquisition announcement issued by the companies in June. Evoke’s board took the duty changes into account when it announced its strategic review on 10 December 2025, and the group’s initial estimate was that the changes would increase duty costs by approximately £125 million to £135 million on an annualised basis once fully implemented, before mitigating actions, representing 36% of evoke’s FY 2025 EBITDA.

Commenting on the retail closures, Widerström said: “The closure of 270 shops over the past year shows the real impact on jobs and livelihoods from higher industry taxation, and we urge the UK Government to carefully consider any further increases ahead of its forthcoming Autumn Budget.”

In its interim results for the six months ended 30 June 2026, published on 12 August 2026, evoke said gaming duties increased by £46 million year-on-year, predominantly in the UK. The company said its mitigation actions, including lower but more effective marketing investment, improved promotional efficiency and operational cost savings, offset over half of the gross increase during that period. Evoke closed approximately 200 retail shops in May 2026 under its retail estate rationalisation programme.

Group revenue for the first half of 2026 was £887.5 million, stable on a reported basis and up 2% on a like-for-like basis. Adjusted EBITDA was £150.2 million, down 9.5% year-on-year, a reduction the company attributed primarily to the £46 million increase in gaming duties. There were 1,024 shops open at the end of H1 2026 compared with 1,302 at the end of H1 2025, representing a 21.4% reduction.

The board did not recommend a dividend for the half year ended 30 June 2026, with payments suspended until leverage is at or below 3x. Net debt stood at £1.9 billion at 30 June 2026, with a leverage ratio of 5.6x.

Bally’s Intralot Acquisition

The boards of evoke and Bally’s Intralot announced on 5 June 2026 that they had reached agreement on the terms of a recommended all-share acquisition of the entire issued and to be issued ordinary share capital of evoke, to be implemented by means of a court-approved scheme of arrangement between evoke and its shareholders under Gibraltar company law. Under the terms, evoke shareholders are entitled to receive 0.537 New Intralot Shares for each evoke share, representing a value of 52 pence per share based on Intralot’s share price of €1.12. On that basis, the acquisition values evoke’s ordinary share capital at approximately £243.1 million.

Shareholders may instead elect to receive 52 pence in cash per share under a cash alternative offer capped at £117.1 million in aggregate, with elections scaled back on a pro-rata basis and the balance settled in New Intralot Shares if the cap is exceeded. The offer represented a premium of approximately 138% to evoke’s share price of 21.9 pence at the close of business on 9 December 2025, the last business day before the strategic review was announced, and approximately 77% to the volume-weighted average share price of 29.4 pence over the three-month period ending on 17 April 2026.

Bally’s Intralot was created through the combination of Bally’s and Intralot in October 2025, after which Bally’s Corp. became its majority shareholder. Bally’s Intralot said it expects the acquisition to unlock approximately £180 million of identified pre-tax cost and capex savings by the end of the second year following completion, realised primarily from marketing spend optimisation, operational efficiencies and IT infrastructure. It will also seek the listing of the New Intralot Shares on the Main Market of Euronext Athens.

Evoke said both sets of shareholders have now passed the required resolutions at the relevant shareholder meetings, and the majority of the required regulatory approvals have been received. Subject to the satisfaction or waiver of the remaining conditions, completion is expected late in the fourth quarter of 2026 or early in the first quarter of 2027.