Evoke's Strategic Turnaround and International Expansion: A High-Conviction Buy for 2025

In the volatile world of global markets, few stories combine operational rigor with strategic boldness as compellingly as Evoke plc's transformation in 2025. By leveraging disciplined cost management, targeted international expansion, and a sharp focus on regulated markets, the company has repositioned itself as a leader in high-margin, sustainable growth. For investors seeking exposure to a firm with a clear path to long-term value creation, Evoke offers an intriguing opportunity.

Operational Efficiency: The Engine of Profitability

Evoke's turnaround began with a £30 million cost optimization program, executed with precision across FY2024. This initiative, complemented by an additional £15 million in savings in the second half of the year, directly fueled a 71% surge in adjusted EBITDA in H2 compared to H1. The result? A full-year adjusted EBITDA margin of 17.8%, rising to 22.1% in the final six months—a testament to the power of disciplined execution.

The company's focus on marketing efficiency further amplified these gains. By refining customer segmentation and lifecycle management, Evoke boosted average revenue per user (ARPU) by 6% year-on-year. This shift from volume-driven to quality-driven growth has not only stabilized margins but also enhanced customer retention in its core markets.

International Expansion: Strategic Acquisitions and Market Localization

Evoke's most striking move in 2024 was the acquisition of Romania's Winner.ro, a brand that now contributes 7% of the local market share in the country. This acquisition, integrated seamlessly with the company's 888 platform, exemplifies Evoke's strategy of combining local expertise with global scale. The Romanian market, now part of a five-core-market portfolio (UK, Italy, Spain, Denmark, and Romania), has driven a 12% constant currency growth in online revenue in H2 2024.

The company's emphasis on regulated markets—accounting for 95% of total revenue in 2024—has been pivotal. By exiting low-margin, unregulated “dotcom” markets (now just 4% of operations, down from 13% in 2021), Evoke has prioritized jurisdictions with clear regulatory frameworks and higher customer trust. This shift is not merely defensive; it is a proactive strategy to capitalize on the growing demand for compliance in the online gambling sector.

Market Share Gains in Regulated Territories: A Sustainable Edge

Evoke's dominance in regulated markets is underscored by its 22% retail and 9% online market share in the UK through William Hill. The company's product migrations—such as moving Mr Green to the 888 platform and William Hill Italy to Exalogic—have streamlined operations and accelerated market-specific customization. These moves are not just technical adjustments; they are strategic plays to enhance user experience and lock in market share.

The Romanian acquisition, in particular, has proven transformative. Winner.ro's integration has driven an 11% revenue surge in Q1 2025, with the 888 casino product alone capturing a 7% market share. This success is emblematic of Evoke's ability to replicate its core model in new geographies while adapting to local nuances.

Financial Health and Future Outlook

Evoke's financials reflect the fruits of its strategy. With adjusted EBITDA expected to reach £300–310 million in FY2024 (surpassing analyst forecasts), the company is on track to achieve a 20% margin by 2025. Its focus on core markets has also stabilized cash flows, enabling a deleveraging plan that supports long-term value creation.

Looking ahead, Evoke's pipeline is robust. A £15–25 million cost savings target for 2025, combined with ongoing product innovations (e.g., upgraded Bet Builder tools), positions the company to outperform in an increasingly competitive sector. The acquisition of Winner.ro has already demonstrated the scalability of its international model, with further expansion in regulated markets likely.

Investment Thesis: A High-Conviction Buy

For investors, Evoke's current trajectory offers several compelling entry points. Its operational efficiency has created a durable margin buffer, while its international expansion has diversified revenue streams into high-growth, regulated markets. The company's ability to execute cost-optimization programs without sacrificing user experience—rare in the tech-driven gambling sector—further strengthens its competitive edge.

However, risks remain. Regulatory scrutiny in the gambling industry is intensifying, and Evoke's reliance on a narrow set of core markets could expose it to regional downturns. Yet, these risks are mitigated by the company's proactive compliance focus and its history of adapting to regulatory shifts.

In conclusion, Evoke's strategic turnaround—a blend of operational discipline, international ambition, and market share gains—has positioned it as a standout performer in 2025. For long-term investors, the company's focus on regulated markets and its proven ability to scale through acquisitions make it a high-conviction buy. The path to value creation is clear, and the rewards for patient capital are substantial.