William Hill Announces Positive First Half Financials
The UK based betting company William Hill plc has released its first half 2012 financial results, highlighting increased numbers over the same period last year.
Key financial indicators for the first half ending June 28th were:
* Group net revenue up 11% to £627.8 million and operating profit up 14% to £167.8 million with innovation and investment driving market share gains by William Hill Online.
* Good Retail performance drove 5% net revenue growth in both over-the-counter (OTC) betting and gaming machines, and operating profit increased by 6%
* Online Net Revenue up 30% to £198.4 million
* Outstanding William Hill Online performance with Sportsbook turnover 33% ahead of H1,2011, overall net revenue up 30% and operating profit increased by 23%
* Mobile Sportsbook turnover soared 390%, 28% of total Sportsbook betting in June was via mobile channels.
* Overall profit after tax up 15% to £117.9 million
* Basic adjusted earnings per share and dividend up by 17%
* Nevada licences awarded to William Hill and William Hill US formed through completion of three previously announced US land-based acquisitions
* International expansion continued with the award of an online licence in Spain, the launch of a Spanish regulated site and the expansion of the group’s Italian regulated site.
* Continued strong cash flow from operations reduced net debt for covenant purposes by £61 million to £355 million compared with December 2011
Commenting on the results, William Hill CEO Ralph Topping said: “We have seen a strong performance in our multi-channel UK business in the first half, with a good performance from both OTC and machines in Retail, and with our focus on innovation and investment continuing to deliver outstanding growth at William Hill Online.”
“Mobile remains a top priority and continues to outperform our expectations. The William Hill Sportsbook app, which has been top-ranked since its launch in the Apple App Store in mid-February, has delivered more than 40,000 new customers. Our rapidly growing mobile business increased to 22% of our Online sports betting turnover and 11% of gaming net revenue in the first half.”
“We have made good progress in the period on our strategy in expanding internationally, including being awarded an online licence in Spain. It was also very pleasing to be awarded the Nevada licences in June and to complete the acquisition of the three land-based sports betting businesses. Though their contribution to the Group today is small, they represent an important strategic step for William Hill as we look to build our international business.”
“With further innovation to come, the group is in good shape and the Board remains confident of its expectations for the full year.”