William Hill’s online turnaround continues as H1 revenues climb 11%
Operator says its results benefited from its ongoing “digital transformation” with sports betting revenues up 18% and gaming up 4%
William Hill today reported an 11% year-on-year rise in Online net revenue during H1 2018 as the London-listed operator’s digital turnaround continues against a tough retail backdrop.
The UK bookmaker posted Online net revenue of £320.9m for the 26-week period compared to £290m in the same period last year, driven by an 18% year-on-year rise in sports betting revenues.
Sportsbook net revenue benefited from the first 13 days of the FIFA World Cup, while the H1 period also saw gross win margin increase 1.4 percentage points from 6.9% in H1 2017 to 8.3% this year.
However, the operator said the high margin impacted recycling and meant sportsbook amounts wagered were down 5% to £2.4bn.
William Hill’s gaming basis recorded a 4% year-on-year rise in net revenue to £156.4m.
On a geographic basis, net revenue from core markets, including the UK, Spain and Italy, was up 10% to £282.4m, and in other markets was up 15% to £38.5m. Hills’ UK digital business reported a 9% rise.
William Hill CEO Philip Bowcock says the company has “greater clarity over the challenges and opportunities” that lie ahead
The strong online growth helped William Hill offset a “challenging trading environment” for its retail business, which reported a 3% fall in net revenue, following the UK government’s decision to slash FOBT stakes to £2.
The operator said that exceptional charge and adjustments of £915.9m, including £882.8m linked to the Triennial Review, led to a statutory loss before tax of £819.6m.
Today’s financial results follow a busy six-month period for Hills online division after the operator pulled out of the Australian gambling market, opened its new headquarters in London and hired former Betsson CEO Ulrik Bengtsson to lead the “transformation” of its digital business.
“William Hill has performed well during the first half of 2018 and, following major regulatory decisions in the UK and US, we now have greater clarity over the challenges and opportunities that lie before us,” Philip Bowcock, chief executive officer of William Hill, said.
He added: “During the first half, our Online business continued to deliver double-digit growth. In Retail, we are beginning to put in place plans to mitigate the impact of the Triennial Review.”
The H1 period also saw William Hill continue to expand its US footprint following the repeal of PASPA, with the company signing a number of sportsbook deals with land-based casinos and taking the first bet in New Jersey at Monmouth Park.
Hills today announced it had signed contracts with 11 casinos in Mississippi and one in West Virginia.
“In the US, we have moved quickly following the repeal of PASPA as we grow into newly regulating states,” Bowcock continued.
“We will continue to invest in the US to ensure we are well placed to capture the substantial potential available to us.”
On a statutory reporting basis, William Hill US recorded a 50% year-on-year rise in net revenue to £36.9m, with amounts wagered up 14% to £479.2m.
William Hill’s share price was down 7.2% to 271.26p on the London Stock Exchange at the time of writing.