Evoke's Strategy Against Tax Increases in the UK

Evoke's Chief Financial Officer, Sean Wilkins, asserts that the company has effectively managed the impact of tax increases in the UK. During the first half of the year, they reported revenues of £887.5 million, of which £348.1 million came from their online division in the UK and Ireland. The remote gambling tax rate increased from 21% to 40% on April 1.

Strategies Beyond Cost Reduction

In the second quarter earnings call, Wilkins indicated that the measures taken have been more than just simple cost cuts. "We did a very good job mitigating the tax increases. We focused on more effective marketing," he stated. Despite a year-on-year drop in marketing spend, Evoke achieved 4% growth. "This has not just been a cost-cutting exercise; we are very pleased with the results achieved."

The closure of 278 betting shops in the last 12 months is a part of this strategy. The closed shops were unprofitable, which improved results in the retail segment.

Impact on International Revenues

Revenue from the international division reached £293.8 million in the first half, a decrease of 1.9% compared to the same period in 2025. While Italy and Denmark saw increases of 21% and 13%, respectively, there were declines in Spain, Europe, and the rest of the world. In Romania, the new GGR tax increased from 21% to 30%.

Response to Market Fluctuations

The group's CEO, Per Widerström, commented on variations in international markets: "We are pleased with core markets like Italy and Denmark, but we face challenges in Spain and Romania." In Spain, product issues have been identified in the sports area. However, investment in products has increased since the beginning of the year, and the launch of the new William Hill app has received good feedback.

Widerström further noted that they have reassigned resources from the UK to Spain to accelerate the technological roadmap. "We are committed to preserving liquidity across all markets, including Romania, despite the higher tax burden."

Evoke's management illustrates how the company adapts its strategies in the face of fiscal and market challenges, seeking a balance between cost efficiency and improvements in the value proposition for the customer.