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888 Holdings (GB:EVOK)
:EVOK
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888 Holdings (EVOK) AI Stock Analysis

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GB:EVOK

888 Holdings

(LSE:EVOK)

Rating:59Neutral
Price Target:
72.00p
▲(1.84%Upside)
The stock's score reflects a blend of strong technical performance and positive corporate events, counterbalanced by weak financial performance and unattractive valuation. The company faces challenges with profitability and high leverage, but its recent strategic initiatives and market momentum provide a positive outlook.
Positive Factors
Financial Performance
There is comfort with full-year revenue and EBITDA guidance, which is ahead of current consensus expectations.
Revenue Growth
Momentum picked up with revenue growth and strong performance in online sectors.
Valuation
Valuation at a 5.8x EV/EBITDA multiple is considered undemanding, indicating potential for longer-term equity upside.
Negative Factors
Interest Costs
Higher interest costs are expected to lower EPS estimates by 18% for the fiscal year.
Liquidity Management
The company has drawn a revolving credit facility of £85 million, indicating liquidity management challenges.
Revenue Expectations
Revenue growth for the first quarter is below the annual target, which may affect future performance expectations.

888 Holdings (EVOK) vs. iShares MSCI United Kingdom ETF (EWC)

888 Holdings Business Overview & Revenue Model

Company Description888 Holdings PLC (EVOK) is a leading global online betting and gaming company, offering a diverse range of products including casino, poker, sports betting, and bingo. The company operates multiple brands and platforms, providing entertainment to millions of customers worldwide. 888 Holdings is recognized for its cutting-edge technology, innovative gaming solutions, and commitment to responsible gaming practices.
How the Company Makes Money888 Holdings generates revenue primarily through its online gaming and betting platforms. The company earns money via three key revenue streams: B2C operations, B2B operations, and licensing. In B2C, customers directly engage with 888's gaming brands, where the company earns revenue from wagers, bets, and gaming fees. The B2B segment involves providing technology and gaming solutions to third-party operators, generating income from partnerships and service agreements. Additionally, 888 Holdings licenses its proprietary technology to other gaming operators, contributing to its earnings. The company's performance is supported by strategic acquisitions, innovative product offerings, and a strong focus on regulated markets to ensure sustainable growth.

888 Holdings Earnings Call Summary

Earnings Call Date:Mar 26, 2025
(Q4-2024)
|
% Change Since: -0.98%|
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.
Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
The company shows strong revenue growth but faces profitability issues with persistent net losses. The balance sheet is concerning due to negative equity and high leverage, posing financial stability risks. While cash flow from operations is positive, cash flow management remains a challenge.
Income Statement
45
Neutral
The company has experienced significant revenue growth over the years, increasing from $439.2M in 2019 to $1.75B in 2024. However, the net profit margin has been negative for recent years, indicating ongoing profitability challenges. The gross profit margin remains healthy, at around 65.6% for 2024, but the negative EBIT margin highlights operational inefficiencies.
Balance Sheet
30
Negative
The company has a negative stockholders' equity as of 2024, reflecting more liabilities than assets, which is a significant risk factor. The debt-to-equity ratio cannot be calculated due to negative equity, but the high total debt of $1.83B suggests substantial leverage. The equity ratio is also negative, further emphasizing the financial instability.
Cash Flow
60
Neutral
Operating cash flow has improved, contributing to positive free cash flow of $131.1M in 2024. The free cash flow to net income ratio is positive, indicating some financial flexibility. However, the free cash flow growth rate has been volatile, and overall cash flow management needs improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.75B1.71B1.24B712.30M662.61M
Gross Profit1.15B912.60M674.10M437.29M438.88M
EBITDA234.40M288.80M83.00M107.18M49.21M
Net Income-192.00M-56.40M-120.50M49.90M8.29M
Balance Sheet
Total Assets2.67B2.75B2.96B398.69M356.05M
Cash, Cash Equivalents and Short-Term Investments265.40M256.20M339.20M195.73M141.34M
Total Debt1.83B1.75B1.79B22.81M24.65M
Total Liabilities2.77B2.67B2.80B274.72M246.02M
Stockholders Equity-116.40M79.90M159.20M123.89M110.03M
Cash Flow
Free Cash Flow131.10M81.10M-180.90M74.17M113.31M
Operating Cash Flow226.50M151.40M-104.10M96.42M139.04M
Investing Cash Flow-93.70M-21.10M-430.60M-22.25M-24.17M
Financing Cash Flow-103.50M-188.60M663.90M-50.61M-45.15M

888 Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price70.70
Price Trends
50DMA
59.61
Positive
100DMA
57.32
Positive
200DMA
60.26
Positive
Market Momentum
MACD
2.54
Negative
RSI
65.88
Neutral
STOCH
68.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:EVOK, the sentiment is Positive. The current price of 70.7 is above the 20-day moving average (MA) of 65.11, above the 50-day MA of 59.61, and above the 200-day MA of 60.26, indicating a bullish trend. The MACD of 2.54 indicates Negative momentum. The RSI at 65.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:EVOK.

888 Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
£1.20B12.416.42%
72
Outperform
£160.32M18.1330.30%21.54%48.51%
72
Outperform
£742.93M23.099.21%94.58%9.68%126.73%
66
Neutral
£6.39B-23.74%1.38%6.70%53.23%
64
Neutral
£1.74B10.466.12%256.38%0.55%-33.64%
59
Neutral
£326.22M-379.34%2.55%-239.10%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:EVOK
888 Holdings
70.70
12.50
21.48%
GB:PTEC
Playtech
396.50
181.08
84.06%
GB:RNK
Rank Group plc
154.80
86.26
125.85%
GB:GMR
Gaming Realms
53.60
16.40
44.09%
GB:ENT
Entain plc
993.20
414.15
71.52%

888 Holdings Corporate Events

Business Operations and StrategyFinancial Disclosures
Evoke Plc Reports Strong Q2 2025 Revenue Growth
Positive
Jul 22, 2025

Evoke Plc reported a 5% revenue growth in Q2 2025, driven by a 6% increase in online activities and a successful rollout of 5,000 new gaming machines. The company expects its H1 Adjusted EBITDA to be significantly higher year-over-year, with a range of £163-167m, supporting its strong deleveraging strategy. The board remains confident in achieving its FY25 targets, focusing on product delivery, improved marketing returns, and cost savings.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

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

Evoke PLC has announced its total voting rights in accordance with the FCA’s Disclosure and Transparency Rules. As of June 30, 2025, the company has an issued share capital of 449,835,316 Ordinary GBP£0.005 shares, each carrying one vote. This information is crucial for shareholders to determine their notification obligations regarding their interests in the company.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Evoke PLC Director Joins Atlantic Grupa Supervisory Board
Positive
Jun 26, 2025

Evoke PLC has announced that Andrea Gisle Joosen, an Independent Non-Executive Director, will join the Supervisory Board of Atlantic Grupa d.d. starting from September 4, 2025. This appointment reflects Evoke PLC’s strategic move to strengthen its governance and expand its influence in the industry, potentially enhancing its market position and stakeholder relations.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Executive/Board Changes
Evoke plc Director Joins Grafton Group Board
Neutral
Jun 18, 2025

Evoke plc has announced that Andrea Gisle Joosen, an Independent Non-Executive Director, will join Grafton Group plc as a Non-Executive Director starting July 1, 2025. Joosen will also serve on Grafton’s Audit & Risk, Remuneration, and Nomination Committees and is set to become Chair of the Remuneration Committee, potentially strengthening Evoke’s strategic connections and influence within the industry.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Regulatory Filings and Compliance
Evoke PLC Announces Total Voting Rights
Neutral
Jun 2, 2025

Evoke PLC has announced its total voting rights in accordance with the FCA’s Disclosure and Transparency Rules. As of May 31, 2025, the company has 449,835,316 ordinary shares, each with one vote, making the total number of voting rights 449,835,316. This information is crucial for shareholders to determine their notification obligations regarding their interests in the company.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Shareholder MeetingsFinancial Disclosures
Evoke PLC Reports Successful AGM with Revenue Growth
Positive
May 28, 2025

Evoke PLC, a company listed on the London Stock Exchange, announced that all resolutions were passed at its Annual General Meeting held on 28 May 2025. The company reported a year-to-date revenue growth of approximately 5% and expressed confidence in its plans for the remainder of the year. The AGM saw a 53% turnout, with significant support for most resolutions, although around 20% of votes were against two specific resolutions related to equity securities. The board plans to engage with shareholders to address these concerns and will publish a detailed outcome of this engagement within six months.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Evoke PLC Forms Technology Committee to Strengthen Strategic Oversight
Positive
May 28, 2025

Evoke PLC has announced the formation of a new Technology Committee within its Board, chaired by Independent Non-Executive Director Susan Standiford. This committee aims to oversee the company’s major technology investments and initiatives, ensuring they align with business strategy and risk management. The establishment of this committee is expected to enhance governance and strategic development, providing transparency and insight into technology trends that could shape Evoke’s long-term competitive advantage.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

Executive/Board Changes
Evoke PLC Announces Executive Bonus Share Purchase
Neutral
May 27, 2025

Evoke PLC has announced the purchase of annual bonus shares for its CEO, Per Widerström, and CFO, Sean Wilkins, in accordance with its remuneration policy. The shares were bought at a price of 54p each, with Widerström acquiring 68,958 shares and Wilkins 31,659 shares. This transaction reflects the company’s commitment to aligning executive compensation with shareholder interests, as the shares are subject to a holding period until the second anniversary of the purchase date.

The most recent analyst rating on (GB:EVOK) stock is a Buy with a £74.00 price target. To see the full list of analyst forecasts on 888 Holdings stock, see the GB:EVOK Stock Forecast page.

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

Evoke PLC, a company with a focus on its issued share capital and voting rights, has announced that as of April 30, 2025, its total issued share capital consists of 449,835,316 Ordinary shares, each with one voting right. This total number of voting rights is crucial for shareholders as it serves as the denominator for calculating their interests or changes in interests under the FCA’s Disclosure and Transparency Rules.

Other
Evoke PLC CFO Increases Stake with Share Purchase
Positive
Apr 30, 2025

Evoke PLC announced a significant transaction involving its Chief Financial Officer, Sean Wilkins, who purchased 101,652 ordinary shares of the company at an average price of 49p each. This move indicates a strong vote of confidence in the company’s prospects by a key executive, potentially impacting investor perceptions and the company’s market positioning.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 23, 2025