William Hill hails positive start to 2017 as online revenues climb 16%
Operator's online sportsbook records 26% growth in net revenues, while gaming posts an 8% rise
William Hill this morning reported a 16% year-on-year rise in online revenues for the 17 weeks to 25 April 2017, driven by strong growth from the operator’s UK sports betting business.
Online sportsbook net revenue increased 26% during the 17-week period, on the back of an 11% rise in the UK sportsbook wagering and a 1.2 percentage points higher gross win margin of 7.5%.
Meanwhile, William Hill’s gaming arm recorded an 8% year-on-year rise in revenues, growth the operator said had come from both its core and non-core markets.
The FTSE 250 company also reported strong revenue growth from its Australia-facing business, which recorded a 19% rise in local currency (41% reported) and a 29% rise in amounts wagered (53% reported).
“It has been a positive start to the year for William Hill across the board,” William Hill CEO Philip Bowcock said.
“Our Online business continues to deliver growth thanks to the improvements in product, user experience and marketing we have made.
“Our transformation programme is progressing well and we are on track to deliver £40m of annualised savings by the year-end.”
William Hill, which appointed Bowcock as CEO on a permanent basis in March, said it plans to reinvest the cost savings in product, marketing and technology.
Cenkos Securities analyst Simon French said the results were “slightly better than expected”.
“The year has started well and these numbers should reassure the market although we expect a slowdown in headline net revenue growth over the coming months to c6-7% as the group laps Euro 2016 and currency tailwinds unwind,” French added.
Paul Leyland from Regulus Partners said the improved results reflected a return to “sound operations management and delivery”.
“This will rebuild WH’s strength, effectiveness and confidence – and is a critical starting point. But the big question remains how overall UK market share and meaningful international growth will be delivered,” Leyland added.
Overall group revenue increased 9% during the 17-week period, including 1% growth in retail and 3% (19% reported) growth from its US business.
William Hill’s share price was up 0.70% to 302.30p on the London Stock Exchange at the time of writing.