| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 54.43 | 119 |
| Intrinsic value (DCF) | 34.27 | 38 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Evoke plc (formerly 888 Holdings plc) is a leading online betting and gaming company operating under well-known brands such as William Hill, 888casino, 888poker, 888sport, Mr Green, and SI Sportsbook. Headquartered in Gibraltar, the company serves markets in the UK, Ireland, Italy, Spain, and internationally, offering sports betting, casino games, poker, and other gaming products. Evoke operates through three key segments: Retail, UK Online, and International, leveraging a diversified portfolio to capture growth in regulated markets. The company’s acquisition of William Hill in 2022 significantly expanded its market presence, combining digital expertise with a strong retail footprint. Despite regulatory challenges in the gambling sector, Evoke maintains a resilient business model with a focus on responsible gaming and technological innovation. With a market cap of approximately £246 million, Evoke is positioned as a mid-tier player in the competitive global online gambling industry.
Evoke plc presents a mixed investment case. On the positive side, the company benefits from a diversified brand portfolio and a strong presence in regulated markets, particularly in the UK and Europe. The acquisition of William Hill has enhanced its scale and cross-selling opportunities. However, the company faces significant risks, including high leverage (total debt of £1.83 billion), regulatory pressures, and recent net losses (£192 million in FY 2023). While operating cash flow remains positive (£226.5 million), the lack of dividends and negative EPS (-43p) may deter income-focused investors. The stock’s beta of 1.027 suggests market-average volatility, making it suitable for investors comfortable with sector-specific risks. Long-term prospects hinge on successful integration of acquisitions and regulatory compliance.
Evoke plc operates in a highly competitive online gambling sector dominated by larger players like Flutter Entertainment and Entain. Its competitive advantage lies in its multi-brand strategy, combining legacy 888 brands with the established William Hill retail and online presence. The company’s proprietary technology platform supports seamless gaming experiences across sports betting, casino, and poker, enhancing customer retention. However, Evoke’s smaller scale compared to industry leaders limits its marketing and R&D budgets, putting it at a disadvantage in customer acquisition. Regulatory risks, particularly in the UK where stricter gambling laws are emerging, could further pressure margins. The company’s focus on regulated markets provides stability but may slow growth compared to rivals expanding in emerging markets. Cost synergies from the William Hill integration could improve profitability, but execution risks remain. Overall, Evoke is a mid-tier player with niche strengths but lacks the scale to outperform top competitors consistently.