Online drives Hills first half growth
Egaming revenues up 23% with in-play and mobile sportsbetting the stand-out performers.
William Hill has recorded a 23% year-on-year increase in online net revenues, a day after rival London-listed bookmaker Ladbrokes saw its egaming numbers fail to impress analysts.
The first half rise “ from £124.2m to £152.7m for the 26 weeks ended 30 June “ was accompanied by a 2% rise in retail revenues, helping contribute to a profit before tax of £126.9m, a 23% increase over the same period in 2010.
Chief executive Ralph Topping, who signed a new contract with the bookmaker in June, was particularly pleased with the results given that “The comparator period also included part of a World Cup that delivered a record result for us last year”.
In a statement this morning, Topping attributed the online figures to “outstanding sportsbook growth and innovations in our in-play and mobile offerings,” with the new mobile offering in partnership with Mobenga expected to drive further growth.
In comparison Ladbrokes’ online net revenue for the first half of this year was behind analyst estimates at £85.7m due to lower than expected casino performance. Its net revenue growth, after adjusting for the World Cup, was 6.6% and 19.1% in digital and sportsbook respectively.
In-play betting experienced a year-on-year increase in amounts staked of 95%, while mobile revenue growth surpassed 600% – the £3.7m generated in net revenues by William Hill’s mobile offering was equivalent to 7% of total sportsbook net revenues.
Playtech’s non-controlling interest in William Hill Online amounted to £16.5m for the first half of 2011, £7.8m of which was generated in the second quarter, with the half-yearly figure up £3.6m compared to the same period in 2010.
The next six months will see the company increase its marketing spend following its entry into the regulated Italian casino and cash poker market, with an admission that Italian expenditure is expected to drive the marketing net revenue ratio up “approximately two percentage points” from the current 26% figure.
There was no mention of the lawsuit brought this week by Cantor Gaming against the CEO of Brandywine Bookmaking, the US-based sportsbook which William Hill agreed to buy in May. However, it was noted that if the binding agreements to purchase Brandywine “ plus fellow sportsbooks Cal Neva and American Wagering “ was not completed, then William Hill would incur break fees of US$4.9m (£3m).