Evoque enters Romania after €10m investment
Date: 2024-08-23 Author: Alex Crawford Categories: EVENTS
Evoque plc, the world’s leading betting and gaming group, which operates well-known brands such as William Hill, 888 and Mr Green, has completed the acquisition of 51% of the shares of Romania’s New Gambling Solutions (NGS) SRL, which operates Winner.ro. The deal, worth €10m ($11m), makes the group the fourth largest B2C operator in Romania, which is now the company’s fifth key market.
NGS, the seventh largest operator in Romania, will be an important addition to Evoque’s strategy. The company’s CEO Per Wiederstrom noted that the deal will bring significant benefits to the company’s long-term plans.
888.ro merges with NGS
As a result of the deal, the 888.ro brand, owned by Evok, will be integrated into NGS. The new combined entity will take up around 7% of the gambling market in Romania. Wiederström emphasized that the inclusion of Winner in their portfolio is in line with the company’s strategy to build sustainable and profitable positions in the most promising markets.
In March this year, the company announced its intention to focus on the key markets of the UK, Spain, Denmark and Italy, while the remaining active jurisdictions will be treated as secondary.
As for Romania, Evok intends to significantly expand its presence using a multi-brand strategy and local expertise, including developing the 888 Casino brand. By 2026, Evok plans to increase its share in the business to 51-57%, depending on performance indicators.
In addition, starting from the third year after the acquisition, Evok will have the right to unilaterally increase its share to 100%.
Romania is a market with high growth potential
With a gross gambling revenue of €1.1 billion ($1.22 billion) in 2023 and projected annual growth of 13% until 2026, Romania is an attractive market for Evok. The Winner.ro CEO also noted that this is an “incredibly exciting deal” that combines a local brand leader with one of the strongest international casino brands.
He emphasized that the high growth rate of the market and the successful combination of brands will help the company achieve a sustainable, profitable and leading position in the market.
Winner, which launched its operations in Romania in 2019, earned €19 million ($21 million) in the first half of this year. The company is managed by a strong team that uses a localized approach and a number of competitive advantages, such as an improved product platform, a high degree of customization and a wide network of deposit acceptance points.
Evok believes that the deal, pending legal approval, will not impact debt levels in 2024. However, starting next year, after the deal is completed, which is expected in the third quarter of 2024, the company plans to increase profits and reduce debt.
