Hills predicts 28% full-year online net revenue growth
Operator also announces exclusive machines deal with Inspired Gaming Group.
William Hill saw its online net revenues “grow strongly” in the fourth quarter of 2011, the operator revealed in its pre-close trading update this morning.
Sportsbook, casino and bingo all grew both in Q4 and over the full year and, despite poker declining in the fourth quarter, the company expects to announce year-on-year online net revenue growth of around 28% in its full-year results statement next week, a second consecutive annual revenue increase of more than 20%.
Online profit, meanwhile, is set to rise approximately 17% year-on-year to £106m, it said in a statement, with Playtech’s non-controlling interest reaching £31.3m for the year and £7.4m for the fourth quarter. Sportsbook has flourished despite comparisons with a World Cup year, with amounts wagered rising 51% and net revenue up 36%.
Overall group net revenue is expected to experience a 6% increase, with operating profit set to drop slightly due in part to World Cup comparatives and a higher comparative machines taxation rate.
CEO Ralph Topping said: “As a multi-channel gambling company with a strong management team, we continue to be well placed to leverage the benefits the William Hill brand brings us. I believe there are more opportunities to grow in the UK with investment in marketing and in new technology and innovation taking place in all our channels.
“There are also good opportunities for the business beyond our traditional roots as more governments open up to regulated gambling. We will, therefore, continue to invest in taking our brand and our capabilities beyond the UK in 2012 and future years,” he added.
Nick Batram, analyst with Peel Hunt, retained his firm’s ‘Buy’ recommendation, noting that “The shares outperformed the market in 2011 and we believe they can continue to do so in 2012″, drawing particular attention to the performance of William Hill Online.
However Simon French, analyst from Panmure Gordon, suggested in a note this morning that “Online profit growth will likely be held back by the move to regulated markets in Europe,” and reiterated his firm’s ‘Hold’ recommendation.
Meanwhile, William Hill has also announced an exclusive machines deal with the Inspired Gaming Group, which already supplies 79% of machines in the company’s licensed betting offices.
Hills is currently trialling new three-screen versions of Inspired’s ‘Storm’ machines, with the intention of rolling them out across the remainder of its estate by the middle of 2012.
Topping added: “William Hill has established a reputation for the best gaming offer on the high street and this change to our machines estate will ensure we can continue to offer market leading technology to our customers.”
2012 will also see the company look to make the most of high-profile sports partnerships with the Football Association and Premier League darts.
It is also on the lookout for a new head of mobile following the departure of Michael Byrne after almost four years in the role.