Among the key news on UK stocks, Evoke PLC (previously known as 888 Holdings) (GB:EVOK) shares fell over 13% after the company issued a profit warning for the first half of FY24. The company expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) to be around £35-40 million below expectations, also impacting its full-year results.
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Based in the UK, Evoke is a betting and gaming company with global operations. The company operates through well-known brands like William Hill, 888casino, 888poker, 888Bingo, and 888sport.
Evoke Upbeat on Second Half Prospects
In terms of outlook, Evoke remains confident about the second half of the year. The company mentioned that its revenues in the second half are expected to align with medium-term guidance of 5-9%. The company also stated that its cost-cutting program is expected to yield £30 million in savings this year, with a greater portion weighted towards the second half.
Additionally, Evoke expects higher profitability in the second half, with an adjusted EBITDA margin of 21%. This remains in line with its mid-term target of a yearly expansion of 100 basis points in adjusted EBITDA margin.
Snapshot of Evoke’s Q2 Performance
In the second quarter, Evoke reported revenue of £431 million, which was stable compared to the previous year and quarter. Among its segments, UK Online revenue increased by 3%, including a 6% rise in its gaming revenue, driven by ongoing enhancements in products and promotions. In the International segment, revenue grew by 4% on a constant currency basis as compared to the same period last year.
For the first half, the company’s EBITDA margin is expected to be around 13-14%, impacted by higher marketing expenses that were skewed toward this period.
What is the Evoke PLC Share Price Target?
According to TipRanks’ analyst consensus, EVOK stock has received a Moderate Buy rating with two Buy and two Hold recommendations. The Evoke share price target is 116.25p, which is 55% higher than the current price level.
