UK Betting Firm Evoke Says First-quarter Revenue Growth Lagging

Shares fall more than 15%


Q1 revenue to grow in low single-digit percentage terms


CEO confident in full-year profits development target of 5%-9%


Cost-cutting to save extra 15 million-25 million pounds in 2025


(Adds expert remark in paragraph 4, alters CEO comment in paragraph 8)


By Raechel Thankam Job and Pushkala Aripaka


March 26 (Reuters) - British betting and video gaming firm Evoke on Wednesday said its revenue growth rate would be slower in the first quarter than it had forecast for the complete year, sending its shares toppling even as it beat revenue expectations for last year.


Evoke projection low single-digit percentage growth in first-quarter profits, while restating expectations for yearly revenue to grow 5%-9%, as it faces short-term difficulties associated with regulative curbs on problem gaming and some expected revenues not coming in.


The company's shares had fallen as much as 18.8% by 0852 GMT and were the leading loser on Britain's small-cap index.


"We would expect some issues on Evoke's capability to fulfil its assistance, particularly given a rather soft Q1," JPMorgan analysts said in a note.


Britain is among markets that have actually been punishing wagering business in a quote to check harmful betting habits. In November the UK federal government capped the amount could stake on online slot video games, which are associated with binge play.


Still, Evoke expects first-quarter core profit to increase by 18 million pounds to 28 million pounds ($23.3 million to $36.2 million) from the year before, supported by cost-cutting procedures under which it has actually determined another 15 million pounds to 25 million pounds in savings for 2025.


Under CEO Per Widerstrom, Evoke has actually initiated a turn-around technique for its service which has actually included changing its name from 888 Holdings and doubling down on its concentrate on its core markets of the UK, Italy, Spain, Denmark and Romania.


"We remain extremely positive in our full year expectations ... in addition to driving additional margin expansion as a result of our more efficient operating model," Widerstrom said in a statement.


Evoke's 2024 adjusted core earnings of 312.5 million pounds beat experts' typical quote of 294 million pounds, according to a company-compiled poll.


Bookmakers will also be keenly watching updates from British financing minister Rachel Reeves' Spring budget on Wednesday. Reeves left the sector's taxes the same in October's budget, in a relief for betting companies following reports of 3 billion pounds worth of tax walkings.


($1 = 0.7740 pounds) (Reporting by Raechel Thankam Job and Pushkala Aripaka in Bengaluru; Editing by Mrigank Dhaniwala, Jan Harvey and Joe Bavier)