Gambling operator William Hill posted trading update for the 17 weeks from June 29 to October 25, and the 43 weeks to October 25. The company highlighted the enhancements in mobile sportsbook as what had driven its online division’s return to growth. Overall group revenue grew 6% in the third quarter of the year and 3% in the 43 weeks to October 25.
Online net revenue increased 4% during the 17 weeks to October 25 and remained flat during the year-to-date period. Net revenue from the division’s core markets – the UK, Italy, and Spain – rose 2% year-on-year in the reviewed 17 weeks and dropped 1% in the 43-week period to October 25. Other online markets generated 22% higher net revenue in what could be designated as this year’s third quarter. Net revenue from those also increased 2% in the first 43 weeks of 2016.
Retail net revenue remained flat in the 17 weeks to October 25 and increased 3% year-on-year on a year-to-date basis.
William Hill’s Australian division reported a 59% and 12% growth in net revenue generated during the 17 and 43 weeks to October 25, respectively. William Hill’s US business also registered considerably improved performance. US net revenue increased 81% and 40% in the two reported periods.
As mentioned above, the operator’s most prominent operational highlight from the most recent quarter was its online division’s positive growth. The company attributed the improvement to the enhancements it added to its mobile sports betting business in this year’s second quarter. It also noted that it has continued improving its content with the start of the year’s second half by adding more streamed sports events and increasing the football markets covered.
Online sports betting net revenue increased 11% in the 17 weeks to October 25, and amounts wagered were up 6% year-on-year. On the other hand, gaming net revenue decreased 2% as compared to the same period of 2015. Yet, it improved from the first half of 2016, when a 6% drop was reported. The improved performance of the operator’s online gaming division was attributed to enhancements in the experience offered to players. William Hill said that operations in its core markets – the UK, Italy, and Spain – were more than satisfactory.
As mentioned above retail revenue remained flat during the three months ended October 25. Over-the-counter revenue declined 6% and gaming machine revenue rose 6% year-on-year. During the reported period, the company rolled out 1,200 proprietary self-service betting terminals, thus completing the installation of the originally announced 2,000 such devices. William Hill is planning to add more gaming content to those in the months to come.
Commenting on the latest results posted, William Hill Interim CEO Philip Bowcock said that mobile sportsbook improvements have brought wagering growth to their online division. The executive pointed out that the company will continue implementing changes to further enhance its Internet gambling business and the experience offered to players.
According to Mr. Bowcock, William Hill is right on track to generate full-year operating profit at the top end of the guided range of £260-280 million.
The past several months have been quite eventful for the major UK bookmaker. In July, CEO James Henderson left his post after three years at the company’s helm. In August, William Hill rejected two acquisition bids from rivals Rank Group and 888 Holdings. Most recently, the company walked out of a £5-billion merger with PokerStars owner Amaya Inc. The deal was openly criticized by William Hill’s largest shareholders, which was believed to had been the main reason for its failure.
