William Hill hails Online turnaround after “challenging” 2016
Online profits down 20% year-on-year but early metrics positive for 2017
William Hill this morning posted a 3% drop in online revenues for FY2016 to £545m while online operating profits fell 20% to £101m, but the operator struck a positive tone saying recent changes had led to “encouraging improvements” so far in 2017.
Hills said its new approach and senior hires were already contributing to a positive start to the new financial year with sportsbook wagering up 8% and gaming net revenue up 5% in the seven weeks to 14 February 2017 and the UK delivering “sustained growth”.
“2016 was a challenging year for William Hill, but one in which we made considerable operational progress, leaving us well-placed to drive the business forward in 2017,” interim CEO Philip Bowcock said.
“We have delivered extensive product, user experience and marketing improvements in online, modernised our retail management structure to focus more on the customer and continued to grow in our key international markets.
“There are now encouraging signs in all our divisions, in particular online’s UK business, which is now delivering sustained growth.”
The London-based operator also reported strong international growth, with Australia operating profits up 15% to £15m, US profits up 55% to £14m and a combined £1.8m profit from Italy and Spain.
Bowcock said the focus going forward would be on improving the customer experience and making it fast, easy and personal to bet with Hills.
“To do this, we are expanding our product range, increasing our marketing investment and deploying our technology assets and expertise in key areas,” he said.
“At the same time, we expect our transformation programme to continue delivering important efficiency savings that we can reinvest to deliver an even better customer experience and faster growth.
“We have a clear strategy to take the business forward and grow market share in the UK, while expanding our revenues internationally.”
Group operating profits came in at £261.5m, in-line with revised projections after poor sporting results over the Christmas period, while group net revenues creeped up 1% to £1.6bn.
The firm also delivered a dividend of 12.5p per share, a move it said “reflected continued strong cash flow and the board’s confidence in delivery of strategic priorities and future growth”.
No permanent CEO was named, despite speculation that Bowcock would get the job, but chairman Gareth Davis said an appointment would be made “in a few weeks’ time”.
Hills shares were up 3% to 269p in early trading.