Evoke PLC (LSE:EVOK), the owner of William Hill, has reported a significant earnings hit after higher UK gambling taxes cost the company £46 million in the first half of 2026.
The group posted adjusted earnings before interest, tax, depreciation and amortisation of £150.2 million for the six months to June, a decline of 10% compared with the same period a year earlier.
The duty increases, announced by the UK government in November 2025, effectively erased what would otherwise have been an underlying improvement in profitability across the business.
Evoke said it had offset more than half the gross duty increase through cheaper marketing, better promotional efficiency and cost savings implemented during the period.
The tax rises also triggered a strategic review that ultimately led to the takeover agreement with Bally’s Intralot, which was reached in June 2026.
Revenue was broadly flat at £887.5 million, though it rose 2% when excluding the roughly 270 shops closed since the prior-year period.
The group shut around 200 betting shops in May, as part of a broader effort to streamline its retail estate amid challenging market conditions.
Online revenue in the UK and Ireland rose 4% during the period, with gaming up 7%, driven largely by the William Hill brand’s strong performance.
Revenue from the 888 brand declined as the company deliberately prioritised margins over volume, reflecting a shift in commercial strategy.
International revenue fell 2% overall, with strong growth of 21% in Italy and 13% in Denmark offset by weakness in Spain, Romania and other markets.
The reported loss after tax came in at £70.2 million, which was broadly unchanged compared with the equivalent period in the prior year.
Net leverage, measured as the ratio of debt to earnings, rose to 5.6 times from 5.2 times recorded at the year end, reflecting the pressure on earnings from the duty changes.
Shareholders are scheduled to vote on the Bally’s Intralot transaction on 17 August, with completion expected in the fourth quarter of 2026 or early 2027.
Chief executive Per Widerström said trading since the period end had been in line with expectations, helped by engagement during the World Cup.
