William Hill group profits slip 33% on US expansion
Operator is now in search of a media deal to give it access to new media channels
William Hill this morning posted a 33% drop in operating profit for H1 following its expansion in the US and the limits on roulette machines in the UK.
Despite relatively poor group performance during the period, CEO Philip Bowcock said the US business had reported a $1bn handle and made up 27% of the overall market share across seven states.
Bowcock said: “We continue to expand rapidly in the US, both in Nevada and in the new states, with over $1bn wagered with us in the first half.
“We are now live in eight states and will expand into at least two more states in H2,” he added.
Eldorado’s takeover of Caesars will give Hills access to a further 34 casino licenses, which Bowcock anticipates will generate a $20-35m additional retail EBITDA within three years.
Speaking to investors, group CFO Ruth Prior said Hills would be launching in Iowa and Indiana in the coming weeks.
Prior said the firm was the number one non-fantasy brand in New Jersey with a digital market share of 10%, ahead of the launch of its new in-house tech stack.
Hills is now seeking a media partnership in the States, although Bowcock said any such deal would not be about securing a different brand, but rather allowing it access to new media assets and potential player databases.
Follow the live blog of this morning’s earnings presentation here