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888 Holdings Plc (GB:EVOK)
LSE:EVOK

888 Holdings (EVOK) AI Stock Analysis

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GB

888 Holdings

(LSE:EVOK)

47Neutral
Evoke's stock faces significant financial challenges, especially with negative equity and high debt levels. While earnings call and corporate events provide some positive sentiment, technical indicators suggest bearish trends. Valuation remains unattractive due to ongoing losses and no dividend, resulting in a relatively low overall score.
Positive Factors
Financial Performance
Finals reflect the January trading update and were slightly ahead of consensus expectations.
Revenue Growth
UK&I Online gaming has accelerated to a 12% growth rate, showing strong performance in this segment.
Valuation
Valuation is undemanding at 5.4x EV/EBITDA for FY25E, suggesting potential for investment growth.
Negative Factors
Earnings
Higher interest costs are expected to lower EPS estimates by 18% for the fiscal year.
Financial Concerns
The leverage target has been pushed out by one year, signaling potential financial concerns.
Liquidity Management
The company has drawn a revolving credit facility of £85 million, indicating liquidity management challenges.

888 Holdings (EVOK) vs. S&P 500 (SPY)

888 Holdings Business Overview & Revenue Model

Company Description888 Holdings is a leading global online betting and gaming company, operating in multiple sectors including casino, sports betting, poker, and bingo. Established in 1997, the company is headquartered in Gibraltar and is known for providing a comprehensive online gaming experience through its proprietary technology platform. 888 Holdings offers a wide range of products and services, catering to both business-to-consumer (B2C) and business-to-business (B2B) markets, ensuring a diversified portfolio that meets the demands of a global customer base.
How the Company Makes Money888 Holdings generates revenue through various channels primarily focused on its B2C operations, which include online casino games, sports betting, poker, and bingo. The company earns money by taking a percentage of the stakes placed by players in these games, often referred to as the 'house edge' or commission. Additionally, 888 Holdings has a B2B segment where it licenses its proprietary technology and gaming content to other operators, providing them with the necessary tools to run their own online gaming platforms. Key revenue streams include player deposits, in-game purchases, and subscription fees for premium services. The company also benefits from strategic partnerships and acquisitions that enhance its market presence and expand its offering to new regions and customer segments.

888 Holdings Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
2.11B1.71B1.24B712.30M662.61M439.20M
Gross Profit
1.25B912.60M674.10M437.29M438.88M301.32M
EBIT
56.10M84.20M88.10M80.78M86.64M42.72M
EBITDA
215.45M288.80M83.00M107.18M49.21M63.18M
Net Income Common Stockholders
-179.05M-56.40M-120.50M49.90M8.29M32.61M
Balance SheetCash, Cash Equivalents and Short-Term Investments
278.80M256.20M339.20M195.73M141.34M75.11M
Total Assets
2.75B2.75B2.96B398.69M356.05M326.93M
Total Debt
1.75B1.75B1.79B22.81M24.65M39.63M
Net Debt
1.47B1.49B1.45B-172.91M-116.68M-35.48M
Total Liabilities
2.67B2.67B2.80B274.72M246.02M202.60M
Stockholders Equity
79.90M79.90M159.20M123.89M110.03M124.33M
Cash FlowFree Cash Flow
-48.25M81.10M-180.90M74.17M113.31M45.39M
Operating Cash Flow
24.25M151.40M-104.10M96.42M139.04M63.26M
Investing Cash Flow
-79.05M-21.10M-430.60M-22.25M-24.17M-65.37M
Financing Cash Flow
-49.05M-188.60M663.90M-50.61M-45.15M-23.75M

888 Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price46.40
Price Trends
50DMA
61.32
Negative
100DMA
63.22
Negative
200DMA
62.62
Negative
Market Momentum
MACD
-4.43
Negative
RSI
39.75
Neutral
STOCH
73.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EVOK, the sentiment is Negative. The current price of 46.4 is below the 20-day moving average (MA) of 49.39, below the 50-day MA of 61.32, and below the 200-day MA of 62.62, indicating a bearish trend. The MACD of -4.43 indicates Negative momentum. The RSI at 39.75 is Neutral, neither overbought nor oversold. The STOCH value of 73.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:EVOK.

888 Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$6.56B11.423.23%4.27%2.37%-21.19%
57
Neutral
£40.96B1,052.50-1.40%
GBENT
56
Neutral
£3.65B-23.74%3.26%6.70%53.23%
47
Neutral
£212.85M-379.34%2.55%-239.10%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EVOK
888 Holdings
49.00
-34.15
-41.07%
GB:ENT
Entain plc
576.40
-218.32
-27.47%
FLUT
Flutter Entertainment PLC
227.60
41.21
22.11%

888 Holdings Earnings Call Summary

Earnings Call Date: Mar 26, 2025 | % Change Since: -35.01% | Next Earnings Date: Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company reported exceeding EBITDA expectations and returning to revenue growth with strong performance in core markets and successful cost optimization efforts. However, challenges included a decline in retail EBITDA, postponed leverage targets, and increased net debt.
Highlights
Exceeded EBITDA Expectations
Adjusted EBITDA was £2 million ahead of the top end of the previous update for 2024.
Revenue Growth Achievement
Returned to growth for the first time in three years with full year revenue growth of 3%, and 8% growth in the second half of 2024.
Core Markets Performance
90% of revenue now comes from core markets with 96% from regulated and taxed markets.
International Business Operating Leverage
International business delivered 7% revenue growth and a 31% increase in adjusted EBITDA.
Cost Optimization Achievements
Successfully executed a £30 million cost optimization program and identified £15 to £25 million further savings for 2025.
Retail Gaming Machine Rollout
5,000 new gaming machines rolled out in Italy before Cheltenham, showing positive early signs of growth.
William Hill Brand Relaunch
Relaunched Mr Green and began digital work on 888, with new visual identity for William Hill.
Lowlights
Retail EBITDA Decline
Retail sector saw a decline in EBITDA by 33% due to high fixed costs.
Postponed Leverage Target
Net leverage target of below 3.5x has been postponed to 2027 due to additional investments and costs.
Q1 2025 Revenue Growth Challenges
Expected revenue growth slightly below 5% to 9% target due to factors such as racing cancellations and one less day in the quarter.
Increased Net Debt
Net debt increased by £30 million to £1.79 billion, with cash burn driven by exceptional costs and first-half performance.
Company Guidance
In the recent call, Evoke's leadership highlighted several key metrics and achievements, reflecting their strategic progress and financial performance. For the fiscal year 2024, adjusted EBITDA surpassed expectations by £2 million, reaching £312 million, marking a 4% increase. Revenue growth was reported at 3% for the full year, with a significant 8% increase in the second half. Notably, their online markets saw a 12% year-over-year growth. The company's adjusted EBITDA margin for the second half stood at 22%, with expectations of a 20% margin for 2025. They also successfully executed cost-saving measures, including a £15 million reduction in the second half of 2024, and anticipate further savings of £15 million to £25 million in 2025. Despite a £30 million increase in net debt, driven by the winter acquisition and delayed asset sales, the company aims to achieve a net leverage below 3.5x by 2027. The strategic focus remains on their five core markets, which contribute to 90% of their revenue, supporting a sustainable revenue growth target of 5% to 9%.

888 Holdings Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Evoke PLC Announces Change in Major Holdings
Neutral
Apr 22, 2025

Evoke PLC, a non-UK issuer, has announced a change in its major holdings due to an acquisition or disposal of financial instruments by Helikon Investments Limited, a London-based investment firm. The notification indicates that Helikon’s voting rights through financial instruments have decreased from 5.4864% to 4.9757%, with a total of 22,382,491 voting rights held in Evoke PLC. This change reflects a strategic adjustment in Helikon’s investment in Evoke, potentially impacting the company’s shareholder dynamics and market perception.

Spark’s Take on GB:EVOK Stock

According to Spark, TipRanks’ AI Analyst, GB:EVOK is a Neutral.

Evoke PLC’s overall score reflects strong revenue growth and positive strategic developments, but is weighed down by significant financial instability, including negative equity and high leverage. While recent earnings call and corporate events signal potential for improvement, the bearish technical indicators and poor valuation metrics highlight ongoing challenges.

To see Spark’s full report on GB:EVOK stock, click here.

Business Operations and Strategy
Parvus Asset Management Transfers Investment Management to Jersey
Neutral
Apr 2, 2025

Parvus Asset Management Europe Limited has transferred its entire investment management activities to Parvus Asset Management Jersey Limited. This change, effective from March 31, 2025, has resulted in Parvus Asset Management Jersey Limited holding a 9.911377% voting right in Evoke PLC, indicating a significant shift in the management of investment activities and potential implications for stakeholders.

Business Operations and Strategy
Evoke PLC Announces Transfer of Investment Management Activities
Neutral
Apr 2, 2025

Evoke PLC has announced a significant change in its investment management operations. Parvus Asset Management Europe Limited has transferred its entire investment management activity to Parvus Asset Management Jersey Limited as of March 31, 2025. This transfer has resulted in a change in the voting rights previously held by Parvus Asset Management Europe Limited, which now stands at 0% from a previous position of 9.94%. This move could impact the company’s operational dynamics and its stakeholders, as it reflects a strategic shift in the management of its investment activities.

Financial DisclosuresRegulatory Filings and Compliance
Evoke Plc Releases 2024 Annual Report
Neutral
Apr 2, 2025

Evoke Plc has published its Annual Report for the year ending December 31, 2024, which is now available on their website and will soon be accessible via the UK National Storage Mechanism. This publication aligns with UK Listing Rules and Financial Conduct Authority’s Disclosure Guidance, ensuring transparency and regulatory compliance. The report’s availability is expected to impact stakeholders by providing insights into the company’s financial performance and strategic direction.

Other
Evoke PLC Chairman Increases Stake with Major Share Purchase
Positive
Apr 1, 2025

Evoke PLC announced a significant transaction involving its Non-Executive Chairman, Jon Mendelsohn, who purchased 200,000 ordinary shares at an average price of 48.3p each. This purchase increases his total shareholding to 700,000 shares, reflecting a vote of confidence in the company’s future prospects. The transaction was conducted on the London Stock Exchange, potentially signaling positive sentiment and stability within the company’s leadership.

Regulatory Filings and Compliance
Evoke PLC Announces Total Voting Rights
Neutral
Apr 1, 2025

Evoke PLC has announced its total voting rights in accordance with the FCA’s Disclosure and Transparency Rules. As of March 31, 2025, the company has an issued share capital of 449,835,316 Ordinary GBP£0.005 shares, each with one voting right, totaling 449,835,316 voting rights. This information is crucial for shareholders to determine their notification requirements regarding their interests in the company.

Executive/Board ChangesBusiness Operations and Strategy
Evoke PLC Grants LTIP Awards to Top Executives
Positive
Mar 31, 2025

Evoke PLC has announced the granting of awards under its 2025 Long Term Incentive Plan (LTIP) to its CEO, Per Widerström, and CFO, Sean Wilkins. The awards, which involve a significant number of ordinary shares, are contingent upon achieving specific financial performance metrics over a three-year period, followed by a two-year holding period. This move is part of Evoke’s strategy to align executive incentives with shareholder value creation and could impact the company’s market positioning by potentially enhancing executive focus on long-term growth.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Evoke PLC Returns to Growth with Strong FY2024 Performance
Positive
Mar 26, 2025

Evoke PLC reported its FY2024 financial results, showing a return to growth with a 3% increase in revenue and a 4% rise in adjusted EBITDA, despite a challenging first half of the year. The company underwent a significant transformation, enhancing its operational efficiency and cost control, which led to improved profitability in the second half. Strategic initiatives included the sale of its US B2C business and the acquisition of Winner.ro in Romania, aligning with its focus on sustainable growth in attractive markets. The company also made progress in deleveraging and aims to achieve further cost savings in FY2025, maintaining its revenue growth and EBITDA margin targets.

Business Operations and StrategyRegulatory Filings and Compliance
Evoke PLC Announces Change in Major Shareholdings
Neutral
Mar 25, 2025

Evoke PLC, a company involved in the financial sector, has reported a change in its major holdings, with Artemis Investment Management LLP now holding a 12.211299% stake in the company. This change in holdings, which includes both direct voting rights and financial instruments, signifies a notable shift in the company’s shareholder structure, potentially impacting its strategic decisions and market positioning.

Regulatory Filings and Compliance
Evoke PLC Announces Total Voting Rights
Neutral
Mar 3, 2025

Evoke PLC has announced its total voting rights as of February 28, 2025, in compliance with the FCA’s Disclosure and Transparency Rules. The company has an issued share capital of 449,713,067 ordinary shares, each carrying one vote, making the total number of voting rights 449,713,067. This information is crucial for shareholders to determine their notification requirements under the FCA’s rules.

Financial Disclosures
Evoke PLC to Announce 2024 Full Year Results with Investor Presentations
Neutral
Feb 17, 2025

Evoke plc is set to announce its Full Year Results for 2024 on March 26, 2025. The company will hold a remote presentation for analysts and investors, and a separate session for retail investors. These presentations aim to provide insights into the company’s performance, enhancing transparency and engagement with stakeholders.

Regulatory Filings and Compliance
Evoke plc Updates on Total Voting Rights
Neutral
Feb 3, 2025

Evoke plc has announced its issued share capital and voting rights as part of compliance with the FCA’s Disclosure and Transparency Rules. As of January 31, 2025, the company has 449,713,067 ordinary shares, each with one voting right, which stakeholders can use to assess their shareholding interests.

Other
Evoke plc Director Increases Shareholding
Positive
Jan 29, 2025

Evoke plc has announced a transaction involving Andrea Gisle Joosen, an Independent Non-Executive Director at the company. Joosen purchased 14,572 ordinary shares of the company, priced at 70.3p each, increasing her total holdings to 31,271 shares. This transaction, conducted on 28 January 2025 at the London Stock Exchange, signifies a vote of confidence in the company by a member of its board, which could be indicative of positive expectations for the company’s future performance.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.