Gambling operator William Hill posted its financial results for the 26 weeks to June 28, 2016 or the first half of the year. Overall net revenue increased 1% year-on-year during the reviewed period to £814.4 million. The amount of £808.1 million was generated during the same 26 weeks of 2015.
Highlighting the performance of its four core divisions, the company said that three of them performed quite well during this year’s first half. Bookmaker-friendly results during the UEFA Euro 2016 partly offset the negative effects of the Cheltenham Festival, which has been William Hill’s worst one for decades, the company said in a trading update for the first quarter of the year.
Strong results during the popular football contest that took place from June 10 to July 10 resulted in £36 million in gross win being generated.
William Hill’s retail division delivered a 4% increase in net revenue. During the period in review, the company rolled out 800 proprietary self-service betting terminals across its outlets.
In Australia, new product launches drove a 12% growth in turnover. However, the company pointed out that unfavorable racing results impacted margins. William Hill’s US division delivered a 49% growth in operating profit.
The gambling operator said that it has continued investing in its online business during the first half of 2016. William Hill successfully redesigned the sportsbook mobile experience offered to customers right ahead of the UEFA Euro 2016. Localization of mobile web and apps for four markets also took place within the reviewed 26 weeks.
Operating profit dropped 16% for the period and the amount of £131.1 million was reported. In March, the operator issued a profit warning, saying that unfavorable results during the Cheltenham Festival and withdrawal of online gambling customers as a result from newly introduced regulations that allowed online players to limit their time and money spent online would impact full-year profit in quite a negative manner. The company pointed out that it expects annual operating profit of between £260-280 million. In its half year report, William Hill said that trading has remained in line with that guidance.
Profit before tax amounted to £100.7 million during the 26 weeks ended June 28, 2016, up 28% year-on-year.
Philip Bowcock, Interim CEO of William Hill, said that they will remain committed to delivering on their strategy for diversifying offering and expanding online and internationally. The official further noted that they will focus on several main areas during the second half of the year – to recover online business, to leverage technology improvements in order to secure international growth, and to take advantage of increased efficiencies.
