Bookmaker Evoke shares jump on upbeat profit view

Evoke Shares Surge on Positive 2024 Profit Forecast

By Aby Jose Koilparambil

(Reuters) -British betting and gaming firm Evoke expects 2024 core profit ahead of market expectations and at the top end of its forecast range, helped by growth in its online business and favourable sports results in the fourth quarter.

Shares in the FTSE Small Cap company, which fell 36% in 2024, jumped as much as 11.6% to a near six-month high of 76.65 pence in early Friday trade, while FTSE 100 peer Entain gained about 4%.

Evoke, whose brands include William Hill, 888 and Mr Green, said it expects 2024 adjusted core profit at the top end of its forecast range of 300 million to 310 million pounds ($365-$377 million), ahead of analysts' consensus estimate of 294 million pounds.

Betting firms, facing heightened regulatory pressure to avert gambling addiction, are focusing more on technological innovation and AI-powered personalised betting experiences, and have identified sports betting as a key growth engine.

Evoke, which has licences to operate in 10 European countries and six U.S. states, along with some other regions, said revenue rose about 12% to 13% in the fourth quarter.

Peel Hunt analysts said in a note that investors would be encouraged by two consecutive quarters of revenue growth and the full-year upgrade, adding Evoke had overcome the "unpromising beginnings" of 2024.

Previously known as 888 Holdings, Evoke took its new name last year as part of CEO Per Widerström's strategy to focus on core international markets of Italy, Spain, Denmark and Romania, and reset its operating model with a focus on automation and AI.

Earlier this week, Ladbrokes owner Entain also forecast 2024 core profit at the top end of its estimate range, helped by favourable sports results.

($1 = 0.8214 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru. Editing by Rashmi Aich and Mark Potter)