Evoke to cut £25 million in costs as William Hill owner faces slower growth and rising wage pressures in 2025

Evoke, the gambling group behind William Hill, 888casino, and 888sport, has announced plans to reduce operating costs by up to £25 million ($32.37 million) in 2025 as it works to counter rising labor expenses and mitigate slower-than-expected revenue growth in the first quarter.

The group, which rebranded from 888 last year, reported pre-tax losses of £168.8 million ($218.5 million) for 2024, widening from £130.1 million ($168.4 million) in 2023. While revenues rose by 3% to £1.75 billion ($2.27 billion) and adjusted EBITDA increased by 4% to £312.5 million ($404.5 million), performance in the early months of 2025 is expected to fall short of the company’s full-year growth target of 5% to 9%, with low single-digit growth anticipated in Q1.

CEO Per Widerström, appointed in October 2023 to lead a company-wide overhaul, said the group had “made strong progress” in its transformation. “Whilst a transformation of this scale is never easy, I am pleased with the strong progress we made during the year,” he stated.

In 2024, Evoke implemented a £48 million ($62.1 million) cost-saving program, streamlining operations, integrating AI and automation, and reducing marketing spend. The company also undertook a restructuring of its international footprint, including the sale of its US-facing 888 business to Hard Rock Digital and the acquisition of Romania’s Winner.ro, helping to increase regulated market exposure to 95% of total revenues.

Despite headwinds, the group reported strong gains in the second half of 2024, which drove 63% of its full-year EBITDA. Revenues in the UK rose by 9%, with the UK now contributing over 55% of group online revenue, offsetting a 5% drop in retail performance. A full rollout of new betting machines across William Hill shops is underway to address retail stagnation.

Widerström attributed the group’s improved financial profile to a shift in customer mix, favoring high-value players over volume. He also highlighted improved personalization and new features like bet builders on the William Hill platform.

Though gross profit was nearly flat at £1.15 billion ($1.49 billion), operating profit turned negative with a £200,000 ($258,930) loss, compared to £24.2 million ($31.3 million) in 2023. The company also absorbed exceptional costs, including a £20 million ($25.8 million) charge tied to its US exit and £10 million ($12.9 million) related to the Winner.ro acquisition.

Evoke plans to slash another £15 million ($19.4 million) to £25 million ($32.3 million) in operating expenses to absorb a forecast £10 million ($12.9 million) increase in labor-related costs, driven by higher minimum wages and national insurance contributions. This follows a "high number of redundancies" during 2024.

The group continues to emphasize its renewed focus on core markets, UK, Italy, Spain, Denmark, and now Romania, and product refinement, including updated football and racing landing pages. New improvements are expected throughout 2025 as the company targets what Widerström described as "sustainable profitable growth."

Evoke’s William Hill Online now holds a 9% UK market share, with the retail segment at 22%. In Romania, its new business is estimated to hold a 7% share, combining sportsbook and casino operations. While net debt rose marginally by 0.5%, the company said its turnaround strategy and tighter operations place it on a stronger footing for upcoming regulatory changes and evolving market conditions.