Gambling operator William Hill PLC released today a trading update for the 17 weeks to April 26, 2016. Group net revenue was down 3% as compared to the same period a year ago.
Online net revenue decreased 11% year-on-year. Net revenue from online gaming operations declined 4% during the period in review. Sportsbook net revenue was down 17%. The considerable decrease in proceeds from sports betting was mainly attributed to significant losses during this year’s edition of the Cheltenham festival, unfavorable results from European football, as well as continued drops in the gambling operator’s non-core markets.
In the UK, online net revenue was down 5%. Growth was posted in the Vegas product offering. However, it was offset by losses in online casino operations. During the period in review, Crispin Nieboer was appointed as Managing Director of William Hill’s online operations. The company has formerly said that it would be his responsibility to oversee the introduction of the necessary product enhancements, the marketing efforts to be taken towards customer acquisition and yield, and the expansion in new markets.
As for William Hill’s retail division, it has enjoyed a “good start” to the year. Although the company reported a lower than expected turnover, gross win margin met initial expectations for the period in review and stood at 18.8% or 0.6% ahead of what was reported for the same 17 weeks of 2015. Retail net revenue was up 2% in the months to April 26, 2016. The gambling operator said that it expects to install more than 500 proprietary SSBTs before the beginning of UEFA Euro 2016 and no less than 2,000 of these by the end of 2016.
Net revenue from William Hill’s Australian operations was down 22% during the period in review. Gross win margin stood at 9.4% compared to 10.8% reported for last year.
In the US, net revenue increased 46% and gross win margin stood at 6.7% in the period to April 26, 2016. The increase was attributed to favorable Super Bowl results in February.
Commenting on the company’s latest trading update, CEO James Henderson said that William Hill’s online division has had a challenging start to the year, due to regulatory and tax impacts as well as to unfavorable sports results. As for the performance of the operator’s retail division, Mr. Henderson pointed to the continued growth it has posted and the timely roll-out of the self-service betting terminals before the start of the UEFA Euro 2016. Commenting on the company’s US and Australian businesses, Mr. Henderson said that both divisions show signs for a continued growth.
