Evoke expects earnings to exceed market expectations, shares jump

Investing.com -- Shares of Evoke (LON:EVOK ) jumped over 9% on Friday after the sports betting and gambling giant said that its full-year earnings are expected to exceed market forecasts.

The company reported strong growth in its trading update, driven by online performance across its brands, including William Hill, 888, and Mr Green.

Evoke reported strong Q4 revenue growth of 12-13%, reaching 13-14% in constant currency.

"We continue to see material longer-term equity upside as leverage decreases," said analysts at Jefferies in a note.

The online segment led with 16-17% growth (18-19% in constant currency), driven by improved core markets and favorable sports results.

Strong Q4 performance drove second-half revenue growth to approximately 8%, exceeding the lower end of the 5-9% guidance range.

"Strong cost control and an increasingly efficient operating model mean that adjusted EBITDA is expected to be at the high end of the previously communicated guidance range of £300-310m for the full year, and well ahead of market expectations," the company said in a statement.

Evoke's chief executive, Per Widerström, in a statement, said that the company is transforming its business by aligning its leading brands with clearer customer value propositions.

Five core markets, representing 90% of Q4 revenue, are central to this strategy. The company is focused on operational excellence to improve profitability and reduce debt, Widerström added.

Source: Investing.com