Gambling operator William Hill PLC announced its financial results for both the fourth quarter of 2015 and the whole year. Full-year group revenue amounted to £1.59 billion, down 1% year-on-year.
Revenue from the company’s online operations totaled £550.7 million in 2015, up 4% as compared to the £527.4 million posted for 2014. Core markets, including the UK, Spain, and Italy, generated online revenue of £483.7 million, up 11% year-on-year. However, revenue from other markets where William Hill provides its online services dropped 27% to £67 million.
Retail operations generated £889.5 million, down 2% year-on-year. Revenue from William Hill’s Australian business decreased 20% to £97.9 million in 2015. US operations contributed £33.3 million to the overall figure, up 12% as compared to what was reported for 2014. Revenue from telephone services amounted to £12.4 million, up 5% year-on-year. Other services offered by William Hill generated a total of £7.1 million, just as much as they did in 2014.
Full-year gross profit amounted to £290 million, down from the £371 million posted for 2014. William Hill attributed the drop to the amount of £87 million it had to pay in additional duties, including the Point of Consumption tax, introduced on December 1, 2014. Despite the decrease, the company said that the posted figure was completely in line with expectations.
As for the operator’s results for the fourth quarter of the year, net gaming revenue from online operations increased 18% during the period. Overall Internet net revenue was up 14%. In the fourth quarter of the year, William Hill launched its mobile web and iOS app – Project Trafalgar, as well as the first Macau-branded Live Casino.
Retail gaming revenue increased 2% in the three months ended December 29, 2015. The company said that its prototype self-service betting terminal is now available to be tested by customers and its full roll-out is likely to begin in the first half of 2016.
The gambling operator announced today that after a comprehensive review of its online business, Andrew Lee, Managing Director Online, would resign from his post some time in 2016. Crispin Nieboer was appointed as interim Managing Director of the company’s online operations until a permanent replacement is found.
Commenting on the posted results, William Hill CEO James Henderson said that they were in line with their expectations. The executive further noted that the disruption in the company’s online business after the launch of Project Trafalgar will be addressed in timely manner and that the new product will eventually drive growth.
Mr. Henderson said that the operator will remain focused on building a team that will deliver “product innovation” and ensure that technology is “a major competitive advantage” for the company.
