WILLIAM HILL and 888 owner Evoke is counting the cost of rejigging the business this year.
The gambling giant saw earnings crash by two-thirds in the first half — but bosses yesterday insisted the company was getting “stronger”.
Evoke launched a turnaround plan in March with a view to focusing more on its core markets, which included rebranding from its previous name 888.
It also involved selling its US consumer-facing 888 gambling business to gaming and betting company Hard Rock Digital.
Spending on marketing rose by £16million and there was talk of investing in artificial intelligence to boost efficiency and save cash.
But the benefits are yet to emerge and the company made £43.8million in the six months to June, way down on the £130.8million in the same period last year.
Revenue slumped 2 per cent to £862million in the same period.
Evoke says it has been hit by rising finance costs from the debt-funded £1.95billion takeover of William Hill two years ago.
Boss Per Widerstrom remained upbeat, claiming that the “underlying health of the business is continually getting stronger”.
He added: “We are completely transforming this business. The scale of change is significant.”
Evoke had warned the stock market of its struggles last month when it said online sports betting income was knocked by changes to its operations from last year.
The bad news has seen shares fall around 40 per cent this year.
Its UK retail business, which includes William Hill shops, saw revenues fall 8 per cent in the last six months compared with the same period last year.
Looking forward, bosses expect “significant improvement in profitability” in the year’s second half as losses from selling its US business will no longer be a factor.
Larger rival Flutter, owner Of Betfair and Paddy Power, revealed more positive results this week, partly on the back of improved performance in the US.
Turnover rose a fifth to £2.8billion in the quarter and the number of gamblers on its sites jumped 17 per cent to 14.3million.
RANK’S MONEY MECCA
GROSVENOR Casinos owner Rank is on to a winner as profits doubled to £46.5million in the past six months.
The firm’s Mecca Bingo operation had a particularly good half year, turning a loss of £5.6million to an operating profit of £3.9million.
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The figures helped Rank shares climb seven per cent.
The business struggled during the pandemic and cost of living crisis, with 30 of its 83 bingo halls shutting.
But visits to Grosvenor Casinos are up nine per cent, with a two per cent rise at Mecca Bingo halls.
And some 44 per cent of the 187,000 new customers at Mecca were under 35.
Rank boss John O’Reilly said younger adults were attracted to a “great value night out in what is quite an expensive world”.
Bingo nights have been jazzed up with DJs, comedians and magicians “making it more experiential”.
City centre Grosvenor Casinos are also more likely to attract tourists, particularly in London.
MARS A PAYDAY
US confectionery giant Mars is snapping up Pringles and Pop-Tart maker Kellanova in a £28billion merger.
Kellanova split from food giant Kellogg’s last year and sells snacks along with cereal outside North America.
The deal will bring together brands such as Mars bars, Snickers, and M&M’s, along with Whiskas pet food.
As a result Pringles will be available in China and Twix bars will be sold in Africa.
Kellanova chief exec Steve Cahillane hailed the merger, which needs regulator backing.
ASTRA’S £200BN
DRUGS giant AstraZeneca is Britain’s latest £200billion firm after shares hit an all-time high on news authorities backed a US cancer drug.
Imfinzi is for patients with limited-stage small cell lung cancer.
The news saw shares climb two per cent and helped push the value of the British-Swedish pharma firm to around £204billion.
Vodafone and Shell have previously hit the £200billion valuation but with shares up 20 per cent this year, AstraZeneca is the most highly- valued firm in the FTSE 100.
ADMIRAL SAILS TO SUCCESS
INSURANCE firm Admiral saw customer numbers jump 12 per cent this year after it cut the cost of premiums.
With 10.5million choosing to use the company, profits rose by a third to £309.8million in the six months to June.
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The business’s revenue rose by 43 per cent to £3.21billion.
Admiral had increased premiums in 2022 and 2023 in a bid to respond to what it called “elevated claims inflation”.
But the policy’s reversal has led to it trumpeting a record 5.5million UK customers, with half a million more signing up to other product lines.
Boss Milena Mondini de Focatiis also announced Admiral’s shift to a “scaled agile” corporate working model, as well as enhancing their capabilities in AI.
Shares shot up 8 per cent after the news went live.
Analyst Chris Beauchamp, of IG, said: “The good times are back for insurers it seems, and for their investors, too.”
BAD LINE AT THREE
MOBILE network Three UK blamed inflation for a first-half loss of £30million.
The company said the costs of running and improving its network of phone towers and digital infrastructure had risen.
But losses were lower than the £76million reported for the same time last year.
Three is still awaiting approval for a planned £15billion merger with telecoms rival Vodafone. The deal has raised regulatory concerns.