Sportsbook growth pushes William Hill revenues up 10%
Strong growth from sportsbook and mobile leads to 14% Q4 revenue rise as gaming continues relatively flat performance
UK bookmaker William Hill has recorded a 10% year-on-year rise in online revenues for 2013 as its increased focus on mobile continues to pay off.
The Gibraltar-licensed operator’s online business ended the year with a 14% year-on-year increase in net revenue during Q4, driven by sportsbook which grew 30% year-on-year after a 38% increase in wagers.
Gaming continued its slow performance for the operator, however, and grew by just 2% in Q4, while mobile was a bright spot with a 199% rise in mobile net revenue over the full-year period.
Hills also noted 2014 had begun with a bump as current trading was impacted by unfavourable results in the first two weeks of January with a bad run in the English Premier League leading to a £13m loss despite a 48% rise in sports wagering.
“There is no certainty that we can recoup this shortfall to internal expectations but based on previous experience of such customer-friendly outcomes, we anticipate a positive benefit from increased customer confidence, particularly with so much of the season ahead and with the 2014 World Cup to come,” a Hills statement said.
According to a trading note released this morning, mobile continued to be a key driver for success at the firm following a 92% increase in mobile sports wagers and now accounting for 23% of gaming net revenue on the platform.
“Our investment programme is enabling the delivery of a high quality mobile gaming experience, with further product launches and the implementation of key enablers such as ‘single sign on’ and multiple payments,” the operator said in the trading update.
The success in mobile follows the launch of a new mobile “centre of excellence” in London’s digital hub of Shoreditch to aid the growth of the company’s mobile business.
In December the firm also revamped its mobile payments facility to offer customers a wider range of options and a seamless experience across desktop, native and web applications.
Chief executive Ralph Topping said he was pleased with William Hills end of year results and believes the operator is ready to take the hit from the impending UK PoC tax.
“Q4 proved a strong end to the year as we enjoyed continued momentum in Sportsbook with 38% more wagered in Q4 on a 13 week basis than last year,” he said. “This demonstrates our competitive strength in Online ahead of the expected introduction of the Point of Consumption tax in December 2014.
“We made good progress on key initiatives in the quarter [including] improving our mobile gaming offer”¦ and continuing to enhance Australia’s digital capabilities,” Topping added. “It is also pleasing to see a turnaround in the profitability of our US business in our first full year of ownership.”
The bookmaker saw contrasting fortunes from its Australian and US-facing businesses with the former’s Sportingbet and Tom Waterhouse brands struggling to cope with 42% of favourites winning group races during the Spring Carnival period.
However tomwaterhouse.com, which William Hill acquired last year for an initial fee of AU$34m, recorded its first monthly profit in December.
In Q4 William Hill US recorded a 150% year-on-year rise in online net revenue and a 10% increase in amounts wagered.
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