Transformation and personalisation of products key to Evoke’s growth
Date: 2024-08-20 Author: Kirill Zagoruyko Categories: PAYMENT SOLUTIONS
Evoke plc issued a profit warning in July and last week reported a 2% decline in revenue to £862m, with adjusted EBITDA down 26% year-on-year.
Evoke CEO Per Widerström made no bones about the problems, saying the first half of the year was below expectations and unacceptable. “We understand where we went wrong and have taken action to address them,” he said.
Key growth areas: products and personalisation
One of the key strategies to improve the company’s results is to develop its product offering. The revamped Betbuilder, according to CFO Sean Wilkins, should help drive revenue growth by giving punters more flexibility in how they place their bets. The second half of the year will also see a new product called Impact Sub, which will allow a bet to be redirected to a replacement player.
Additional changes will be made to the deposit process, which will form part of a wider strategy to improve the customer experience.
According to Widerström, improving the customer proposition is a key aspect of the company’s strategic turnaround. He stressed that the company is looking to simplify the customer journey and ensure consistency in product and pricing offerings.
“We see from William Hill in the UK the importance of consistency in our messaging in terms of proposition and pricing, especially for mid- and high-level players,” he said. “We have some really exciting launches coming up.”
Artificial Intelligence and Customer Personalisation
As part of the new strategy, Evoke is making heavy use of AI to improve customer segmentation and create a more personalised experience for players at a lower cost.
“We have significantly improved our player segmentation, which allows us to offer better products and promotions to our core customers, increasing their retention, loyalty and value,” Widerström said. “These improvements allow us to do more with less, delivering £30m in savings, while improving outcomes for our customers. We are already seeing tangible short-term benefits.”
In addition, Evoke has implemented Bloomreach’s e-commerce platform to further enhance personalisation.
Tight cost controls
Group Finance Director Sean Wilkins highlighted how the company’s rapid restructuring was also driving cost savings. The finance team had implemented strict cost controls, tracking costs daily, weekly and monthly.
“Every element of our plan is monitored and controlled to ensure we are delivering on targets. This allows us to take corrective action quickly if we are off course and increase investment if we are over-delivering,” said Wilkins.
“We continue to reduce costs, following our strategy to create a more focused business, investing in the right products and brands in the right countries. We are building a more scalable and efficient business, powered by intelligent automation and AI.”
The new strategy came into effect in March, when 888's US business was sold to Hard Rock Digital. In May, the group was renamed Evoke plc, symbolising the company's new direction.
"We are undergoing a complete transformation, a complete reboot of the business," Widerström said. "While the financial results for the first half of the year are below our expectations, I am pleased with the improvements we are seeing now, both in the short and long term, strengthening the overall strength of the business."
Evoke CEO Per Widerström made no bones about the problems, saying the first half of the year was below expectations and unacceptable. “We understand where we went wrong and have taken action to address them,” he said.
Key growth areas: products and personalisation
One of the key strategies to improve the company’s results is to develop its product offering. The revamped Betbuilder, according to CFO Sean Wilkins, should help drive revenue growth by giving punters more flexibility in how they place their bets. The second half of the year will also see a new product called Impact Sub, which will allow a bet to be redirected to a replacement player.
Additional changes will be made to the deposit process, which will form part of a wider strategy to improve the customer experience.
According to Widerström, improving the customer proposition is a key aspect of the company’s strategic turnaround. He stressed that the company is looking to simplify the customer journey and ensure consistency in product and pricing offerings.
“We see from William Hill in the UK the importance of consistency in our messaging in terms of proposition and pricing, especially for mid- and high-level players,” he said. “We have some really exciting launches coming up.”
Artificial Intelligence and Customer Personalisation
As part of the new strategy, Evoke is making heavy use of AI to improve customer segmentation and create a more personalised experience for players at a lower cost.
“We have significantly improved our player segmentation, which allows us to offer better products and promotions to our core customers, increasing their retention, loyalty and value,” Widerström said. “These improvements allow us to do more with less, delivering £30m in savings, while improving outcomes for our customers. We are already seeing tangible short-term benefits.”
In addition, Evoke has implemented Bloomreach’s e-commerce platform to further enhance personalisation.
Tight cost controls
Group Finance Director Sean Wilkins highlighted how the company’s rapid restructuring was also driving cost savings. The finance team had implemented strict cost controls, tracking costs daily, weekly and monthly.
“Every element of our plan is monitored and controlled to ensure we are delivering on targets. This allows us to take corrective action quickly if we are off course and increase investment if we are over-delivering,” said Wilkins.
“We continue to reduce costs, following our strategy to create a more focused business, investing in the right products and brands in the right countries. We are building a more scalable and efficient business, powered by intelligent automation and AI.”
The new strategy came into effect in March, when 888's US business was sold to Hard Rock Digital. In May, the group was renamed Evoke plc, symbolising the company's new direction.
"We are undergoing a complete transformation, a complete reboot of the business," Widerström said. "While the financial results for the first half of the year are below our expectations, I am pleased with the improvements we are seeing now, both in the short and long term, strengthening the overall strength of the business."
