William Hill owner’s turnaround plan falters as losses widen

The owner of William Hill and 888 reported widening losses in the first half of 2024, in a “disappointing” update that led its new management team to admit that its turnaround plan for the gambling group was running behind schedule.

Pre-tax losses at Evoke, which was rebranded from 888 earlier this year, ballooned from £45m to £147m, largely owing to a £72m hit incurred by the company’s retreat from the US market and finance costs associated with 888’s £2bn takeover of William Hill in 2022.

Revenue slumped 2% to £862m as the company attempts to implement a turnaround plan launched in March.

The results come two weeks before new restrictions affecting gambling companies are due to come into force.

From September, online slot machine stakes will be capped at £5, or £2 for under-25s, having previously been unlimited. The Gambling Commission will also launch a pilot scheme testing new “affordability” checks, which will come into force for online gambling customers spending £500 a month from 30 August.

The change is not expected to have a significant impact on Evoke, although 888 currently applies a £10 maximum stake on slots, meaning a reduction could affect revenues from UK customers.

Evoke’s chief executive, Per Widerström, and chief financial officer, Sean Wilkins, have both joined the company within the past year and have set about reshaping its geographical focus, including the exit from the US.

Changes that have affected the company’s revenue include a £16m spend on marketing, while Evoke said this year that it would invest in artificial intelligence to make the business more efficient.

Widerström said the first-half performance was “disappointing and behind our initial plan” but that the underlying health of the business was improving.

“The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success.

“We are completely transforming this business. Whilst the scale of change is significant, it is necessary for us to deliver mid- and long-term profitable growth and value creation.”

Evoke owns gambling brands including 888poker, 888casino and 888sport, as well as William Hill. It said it expects “significant improvement in profitability” going into the second half of 2024 as losses from selling its US customer-facing business fall out of the results.

The company had already warned markets of the performance last month when it said online sports betting income was knocked by changes to its operations from last year.

In Evoke’s UK retail business, which includes William Hill shops, revenues dropped 8% over the six months to 30 June compared with the same period last year.

The company’s larger rival, Flutter, which owns Betfair, this week reported a 20% increase in revenues over the last quarter, compared with the same period last year, totalling £3.6bn ($2.8bn).