In its complete 2025 earnings conversation on Monday (FY25), Bally’s Intralot CEO Robeson Reeves highlighted several appealing properties it was evaluating in its purchase discussions with Evoke.
Evoke yesterday announced that Bally’s was looking at an all-share merger with Evoke priced at £0.50 per share. Talks come after a strategic evaluation for Evoke to dispose of part or all of its operations, launched in December.
This was prompted by the government nearly doubling Remote Gaming Duty in the UK, effective this month.
Speaking to financial experts yesterday, Reeves stated the operator was drawn to the reach Evoke had built throughout Europe.
“We see an attractive chance to implement our operational approach on a considerably larger business and the ability to reshape its financial outcomes through efficiencies we are uniquely equipped to achieve,” Reeves commented.
“This is a possibility we’re following with determination.”
Evoke worldwide chance a “complimentary” addition
Responding to queries about which elements of the Evoke enterprise especially captured Bally’s attention, the CEO pointed to Italy as “a desirable market, difficult to enter, and [Evoke is] established there”.
He further praised Romania as “a favorable market and [also] on the roster”, and Spain, which might assist in expanding Bally’s limited footprint in that region.
Deutsche Bank analyst Richard Stuber mentioned in a January memo he thought Evoke’s Italian-focused operations generated approximately £60 million of EBITDA annually and are expanding at mid-teen rates. Comparable holdings have been valued at roughly 8x EBITDA.
Evoke’s global gaming income increased 14% in Q4, and CEO Per Widerström stated during a Q4 trading update in January that Italy and Denmark had both achieved record quarterly revenues in Q4.
Reeves was optimistic about the chance Evoke’s global segment could provide for Bally’s Interactive.
“We don’t necessarily comprehend some of these other territories as thoroughly as I would prefer. So we’re being lucky in that you can examine M&A with a single perspective on actually essentially applying your business model just to the UK market, and you can acquire other regions at no extra cost,” he observed.
UK physical outlets still hold worth
When questioned about Evoke’s UK brick-and-mortar assets, a number of which are being closed as part of its strategic assessment, Reeves said: “I believe it’s crucial to have a footprint in retail. I think it’s a solid operation. It needs to operate very much in tandem with online.”
But he also pointed to the enduring difficulties facing the vertical in the UK, originating from fixed-odds betting terminals (FOBTs) stake caps to the effect of Covid-19 shutdowns. The rise in RGD and betting duty next year have also severely impacted retail betting enterprises in the UK as operators have aimed to shed lower-performing assets.
Entain and Flutter have also closed portions of their retail betting portfolios in recent months, with others having threatened similar actions, due to higher taxes on the industry.
“Everything we’re examining we’re being truthful with ourselves and acknowledging, we understand UK online very well. So that will be our focus. There are other elements that come into play where you obtain some other holdings to broaden, that is an extra advantage,” Reeves added.
UK assurance as expansion persists despite RGD increase
Discussing the UK, Reeves highlighted the operator’s assurance in it surpassing market growth in a post-tax hike environment. UK B2C net gaming revenue for Bally’s rose 10.5% year-on-year in Q1.
Nineteen days into April, following the UK’s RGD increase, Reeves stated Bally’s B2C NGR had seen double-digit year-on-year expansion. He also noted player numbers and total wager amount “had remained steady”.
Currently, the UK represents 30% of Bally’s Intralot’s revenue, while America represents 43% and Europe 11%.
“Our offering is competitive and our player base is expanding. So active players are up 7% year-on-year. While some rivals have been cutting marketing spend, we have been attracting players. The market share idea I expressed on previous discussions is not hypothetical; it’s materializing.”
The present high-tax environment had generated a significant opening for consolidation via M&A, the CEO added.
“The remote gaming duty modification has produced a more varied competitive setting. Operators with thin margins and restricted size are under genuine strain. I have mentioned on earlier calls that we’re actively assessing opportunities and that we will not miss a truly attractive one. This morning’s [Evoke] announcement aligns with that stance,” he informed analysts.
He suggested that additional M&A was feasible: “Beyond Evoke, we continue to track the wider M&A environment. Our standards have not shifted, regulated markets, strong brand positions, value-enhancing economics and sensible operational alignment. Our €160 million undrawn revolving credit facility provides genuine financial adaptability for the suitable opportunity.”
Evoke purchase to change Bally’s Intralot capital structure
Where Reeves remained fairly reserved was regarding how its prospective Evoke acquisition could affect the operator’s capital structure, which it had described clearly after the Bally’s Interactive/Intralot merger concluded in September last year.
As of December, the group had a free cash flow of €93.4 million.
“If we proceed with Evoke we’re exploring a different capital structure going forward,” Reeves confirmed during the call. “And as we said, we will abstain at this moment from making and giving any further details [into] how we view it.
CFO Andreas Chryso disclosed during the call that the group’s adjusted net debt reached €1.493 billion, as of December, up from €334.2 million the prior year.