In the first half of 2024, William Hill and its parent company, Evoke (formerly 888), reported a staggering 67% decline in earnings, prompting executives to label the results "disappointing and behind our initial plan."

The results starkly contrast with those of Rank PLC, another gaming and betting company that operates both physical venues and online casinos, which has experienced significant growth in 2024.

With core earnings plummeting to £43.8 million from £130.8 million the previous year and a slight 2% dip in revenues to £862 million, the companies face significant challenges as they strive for a turnaround. 

Shift in Evoke's Strategy 

Evoke’s new strategy and value creation plan was launched in March 2024, with the new Evoke PLC corporate identity effective from May 2024. The strategy focused on mid- and long-term profitable growth and value creation by centering around a clear customer value proposition and distinct competitive advantages.  

However, this restructuring has temporarily impacted revenues, particularly with an 8% decline observed in UK retail operations, including William Hill shops. 

Looking forward, CEO Per Widerström said:  "As I said in our July trading update, while the financial performance in the first half was disappointing and behind our initial plan, the underlying health of the business is continually getting stronger. The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success."

"We are completely transforming this business. While the scale of change is significant, it is necessary for us to deliver mid- and long-term profitable growth and value creation." added Widerström.

"We have already taken bold, decisive actions to both instigate a turnaround in short-term trading performance while simultaneously investing in the group's capabilities to drive step-change value creation and build a bigger, more profitable, more sustainable, and more cash-generative business in the future." 

The company projects a "significant improvement in profitability" in the second half of 2024, as the effects of exiting the US market diminish. Evoke plans to reduce marketing costs by £35 million to £40 million compared to the first half, while also committing to investing in innovative technologies like artificial intelligence.

Despite ongoing challenges, there are indicators of potential recovery. Evoke anticipates achieving revenue growth of 5% to 9% in the latter half of the year, aided by substantial cost savings and a renewed organisational structure following a significant overhaul of its executive team. The company aims for a 20% EBITDA margin by FY2025, suggesting that it has established clear financial targets and a vision for the future. 

As UK betting companies brace for stricter regulations, including enhanced age verification and affordability checks, the evolving regulatory landscape adds another layer of complexity. While these measures may initially impact customer engagement and revenue, they could also create more sustainable operating conditions in the long run.