Analysis from JP Morgan brokers has poured some cold water on any optimism for an Evoke turnaround, suggesting the recent Q4 trading update was 'a non-event' and that the focus for investors should still be very much on the strategic review announced in December.
Evoke’s trading update made for gently positive reading in the wake of news that potential buyers were circling the embattled William Hill operator.
It was published after it had emerged that both Betfred and the newly merged Bally’s-Intralot were potentially interested in an acquisition.
Revenue for the final three months of 2025 represented Evoke's strongest performance of the year, with full-year revenue displaying 2% year-on-year growth, driven largely by a 9% rise in the gaming sector.
That growth was celebrated by CEO Per Widerström, who said: “During Q4 we made good progress against our strategic plans, delivering our best quarter of the year and demonstrating the underlying momentum in the business.”
Evoke’s update is also cautious to remind readers that the Board is still assessing strategic options, which include the potential sale of the group, as announced on 10 December.
The new JP Morgan report reinforces Evoke’s caution and expresses concerns that gaming revenue performance in the UK actually appears to be soft.
With this in mind, the analysis surmises that organic growth was lower than expected given the outsized exposure to mature markets (the UK making up 70% of sales).
Somewhat checking the idea of 'underlying momentum,' the thesis of the report states that brokers would have to “see a meaningful inflection in Evoke’s trading momentum” before casting a more positive judgement on the operator’s direction of travel.
Between 120 and 200 William Hill stores are said to be under threat of closure
