William Hill revenue up 32% as Caesars and CG Technology integrations pay off
Operator “gains significant access” to Las Vegas Strip as CEO Ulrik Bengtsson hails “transformative” 2020
William Hill saw 2020 US revenue rise 32% to £167.3m ($234m) as it launched in seven new states and accelerated the rollout of its online casino platform.
The group recorded an adjusted operating profit of £12.4m ($17.4m) with EBITDA of £22.8m ($31.9m).
The results included £3.7m ($5.2m) relating to income from the receipt of shares in The Stars Group (TSG) that arose from William Hill’s partnership with Eldorado (now Caesars).
Cost of sales increased 44% year on year in line with net revenue growth as the US business hired new staff and onboarded the Caesars and CG Technology sportsbook teams.
The operator handled $3.25bn in bets during the 12-month period across its B2B and B2C operations in the States.
CEO Ulrik Bengtsson said Hills’ online handle grew 28%, while in-person handle fell 10% on the impact of Covid-19 and retail sportsbook closures during the year.
Mobile accounted for 63% of the operator’s overall handle.
“The US traded well into the year-end, concluding with 19% market share and delivering a profitable return,” Bengtsson said in the full-year earnings presentation this morning.
“Our partnerships have ensured that brand awareness has risen, our product offering has expanded, and our end-to-end proprietary tech is facilitating rapid new state openings,” he remarked.
Bengtsson said 2020 was a transformative year for the US business as it integrated its platform into all of Caesars’ sportsbooks and completed the integration of CG Technology.
“When combined with the integration of Caesars onto the William Hill platform, we have gained access to some of the highest-profile sportsbooks on the Las Vegas Strip, including Caesars Palace, The Cosmopolitan, and The Venetian,” Bengtsson said of the CG Technology acquisition.
“William Hill US has put in place the building blocks to grow a market-leading nationwide business of scale.
“Through our partnership model we are optimally positioned to ensure we participate in the rapid growth of sports betting and icasino and look forward with anticipation to integrating the William Hill and Caesars assets.”
The wider group reported a 16% year-on-year drop-off in 2020 net revenue to £1.3bn ($1.8bn), while annual adjusted pre-tax profit crashed 91% with the closure of its 1,400 UK betting shops due to coronavirus.