UK-based gambling operator William Hill announced its unaudited trading update for the thirteen-week period from December 31, 2014 to March 31, 2015.
The company’s net revenue increased 1% year-on-year and operating profit decreased £20 million. The considerable decline was mainly attributed to the Point of Consumption Tax, which was imposed in December 2014, as well as to the increased Machine Games Duty.
William Hill had a weak January, as football results were favorable to players. Yet, online sportsbook wagering rates improved in February and March, and a 16% growth was posted for the reported period. Net revenue increased 11%.
Revenue from gaming rose 8% with casino operations up 10%, bingo operations up 8%, and poker down 38%. A 48% increase in revenue from mobile gaming was also posted. The introduction of the Point of Consumption Tax resulted in a 22% rise in cost sales. Operating costs increased 11%.
William Hill’s retail division also had a slow start, but performance was boosted in February and March. Over-the-counter wagering decreased 2%. The operator attributed this to the closure of 108 shops last year in response to the increase in Machine Games Duty. Over-the-counter gross win declined 2% and revenue from gaming machines rose 4%. Weekly gross win per machine increased 4% to £965, compared to £926 for the first quarter of 2014.
Retail operating costs decreased 4%, as certain staffing model changes were applied after April 2014 and 108 shops were closed last year. At present, there are 2,361 William Hill shops across the United Kingdom. One new shop opened doors and two were shuttered in the three-month period ended March 31, 2015.
William Hill Australia reported a 20% drop in wagering, as the client base was reshaped following the race field fees increases that were introduced in the country in July 2014. Net revenue declined 8%, sales cost rose 6%, operating costs fell 4%. A 37% decrease in operating profit was also reported. During the first quarter of 2015, the operator completed successfully the migration of Sportingbet customers to William Hill’s Australian site and the brand was introduced in the country.
William Hill US wagering was up 30% in the reported period. Gross win remained flat, as Super Bowl results were customer-friendly.
James Henderson, Chief Executive Officer of William Hill, commented that they are making progress on their projects for 2015, with the introduction of a bonus engine that would make the company’s Vegas casino platform even more competitive and the completion of the so-called “Eclipse machine roll-out” being among those.
