Core markets drive 4% rise in Hills online revenues
Growth in UK, Spain and Italy during Q4 help operator record full-year net revenues of ?550.7m
William Hill Online this morning posted a 4% rise in full-year net revenues after the operator was boosted by a strong end to the year within its main markets.
Total net revenues for the 12 months ended 31 December 2015 were ?550.7m, with ?483.7m derived from its core markets of UK, Italy and Spain, which represented an 11% year-on-year increase.
The full-year numbers were enhanced by a strong end to the year with the same trio of markets posting a 14% increase in net revenues during Q4, with gaming net revenues up 18% and sports wagers up 5% at a margin of 8.7%.
Net revenues for the whole of the online business during Q4 were up 8% year-on-year.
The firm’s transitioning Australia-facing business saw net revenues fall 20% across the year to ?97.9m, although the firm said recent trading had been “encouraging” with Q4 producing a 46% increase in active customers and a 221% increase in new accounts.
William Hill said the outlook for 2016 was positive following the rollout of Project Trafalgar at the end of last year and that the new front-end had enabled more releases in Q4 than in the previous nine months.
“I am optimistic the advantages that Trafalgar gives us will drive growth, particularly as we gain flexibility and increase our ability to differentiate,” James Henderson, William Hill, chief executive, said.
The firm also announced the departure of Online MD Andrew Lee following a review of the business. Innovation chief Crispin Nieboer will take charge on an interim basis until a permanent successor is found.
“Technology remains a key pillar of our strategy and the leadership changes announced today are about building a team who will deliver product innovations and continue to ensure technology is a major competitive advantage for William Hill,” Henderson said.
“This will allow us to further build on our brand and scale, and be best placed to compete. I would like to thank Andy for his contribution in recent years and to wish him well for the future,” he added.
Cenkos Securities analyst Simon French described this morning’s results as “reassuring” although noted he expected William Hill to exit Russian in 2016 at a cost of ?8m.
William Hill’s share price remained relatively unchanged at 369.5p after early morning trading.