Gambling operator William Hill posted information about its financial results for the third quarter and the first nine months of the year. Group revenue dropped 9% year-on-year in the three months ended September 30 and 3% year-on-year in the nine months ended September 30.
Group operating profit decreased 39% in the third quarter of the year and 22% in the three quarters ended September 30. The gambling operator attributed the drops to “less strong gross win margin” compared to the one posted for the same periods a year ago. In addition, the company paid the additional amount of £23 million due to the recently introduced Point of Consumption tax and the increased Machine Games Duty.
Online net revenue dropped 3% in the third quarter of the year and increased 3% in the first nine months of the year. The company noted that winnings from its digital operations accounted for 35% of the overall revenue generated during the nine-month period ended September 30.
Retail operations generated 8% less in the third quarter of the year. Revenue from retail dropped 5% during the first nine months of 2015. Proceeds generated by that particular division accounted for 56% of the overall year-to-date revenue of the gambling operator.
William Hill’s Australian division reported a 36% drop in its quarterly revenue and a 19% one in year-to-date one. The company said that the considerable decrease was due to the fact that its Australian business is undergoing an important transition in a bid to present the local gambling market with “market-leading product range.” Revenue from William Hill Australia accounted for 3% of overall year-to-date proceeds.
James Henderson, CEO of the major gambling operator, said that they have expected a weaker third quarter of the year as results were impacted adversely by last year’s strong gross win and the favorable results during the FIFA World Cup. The executive also pointed out that although the company’s retail, US, and Australia divisions posted drops in revenue due to the weaker than initially expected sporting results, William Hill’s online core markets performed relatively well.
Mr. Henderson further commented that the board expects around-the-bottom operating profit of between £290.9 million and £312.1 million for the full year ended December 30, 2015.
