William Hill 2023 revenue lands at £1.2bn as bosses hail “significant opportunities”

William Hill has reported full-year 2023 revenue of £1.2bn as bosses claimed its integration into the wider evoke business could present “significant opportunities” for the bookmaker.

The 77-page document, detailing Hills’ financial performance last year, noted a slight decrease from 2022’s revenue of £1.24bn to £1.23bn in 2023.

Nearly half of that total came from the £501m generated by William Hill’s UK online segment, which was down 2% on 2022’s return of £509.1m.

Management said this was “primarily driven by the impact of safer gambling changes and a refined marketing approach”.

The UK retail arm saw revenue increase 5% from £514.2m to £539.8m, despite the Hills estate decreasing 3% last year. The operator said improvements to gaming cabinets and self-service betting terminals (SSBTs) drove that side of the business.

A further £185.6m in revenue was recorded by the group’s international online brands, namely Mr Green, a 12% downturn on 2022’s £212m driven by compliance changes in dotcom markets.

Adjusted EBITDA for 2023 was recorded at £224.4m, around £10m more than the year prior.

The majority of that total stemmed from William Hill’s UK online segment, which generated £115.7m, while a further £100.7m can be attributed to its UK retail arm.

In 2022, Hills UK online division reported adjusted EBITDA of £112.2m and its retail arm £95.7m.

Hills’ international online arm amassed £31.9m in adjusted EBITDA, down from £33.1m in 2022.

Elsewhere, operating profit shifted from a £31m loss in 2022 to a gain of £114.1m, however, post-tax profit declined to £36.7m from £168.4m.

Hills management said this was as a result of a one-off foreign exchange gain on financing items of almost £200m.

Marketing expenses fell from £151.1m in 2022 to £138m 12 months on, with the overwhelming majority of that figure made up by the £99.2m spent on online marketing.

Operating expenses rose to £598.4m, up from £583.5m in the year preceding it.

The rise in operating expenses can be put down to £24.2m in integration costs, which was made up of £3.6m worth of platform integration expenses, as well as £4.2m in redundancy fees and £7.9m in incentives as part of the integration of William Hill and 888 among other costs.

On tech plans, the report noted that Hills is planning to “further reduce [its] reliance on some suppliers” so that, in future, it will have greater control over its technology.

The report reads: “As part of the wider integration of the William Hill and 888 business there are still plans in place to move to a single global technology platform for delivery of our group content.

“Our product and technology function is responsible for the scoping and delivery of this plan with the involvement of other functions across the group.

“This creates significant opportunities for the business but does also carry risks to ensure the platform is implement to time.”

On average, the monthly number of staff employed by William Hill throughout 2023, including directors, was 10,067.

Wages and salaries for the year fell from £235.6m to £211.7m, while social security also decreased by £1.2m to £21.2m when compared to 2022.

The report details Hills provisions totalling £58.4m that are related to customer compensation claims in Austria.

The provision total has decreased from 2022’s £67m, with the company acknowledging a case in Austria, where claims have been on the rise since marketing campaigns by litigation funders were started in 2020.

Judgements made against William Hill’s entities in Austrian and German courts are the subject of particular scrutiny from customers, looking to have those same rulings enforced in Malta and Gibraltar, but the company is defending them on the base of a public policy agreement.

Hills said the provision was based on an estimate of the number and individual size of the cases and primarily related to the Mr Green brand.