Online sales a winner for William Hill
● Bookmaker sees internet revenue jump 6% but faces regulatory hurdles
Betting giant William Hill has celebrated growing revenues from its digital business and assured investors that its turn around programme is still on track.
Net revenue from the firm’s online business grew 6 per cent over the 17 weeks to 24 October, with the amounts wagered rising 13 per cent.
By contrast, William Hill’s UK retail stores registered half of that revenue growth at just 3 per cent, while wagers fell 1 per cent.
Chief executive Philip Bow cock said the results highlight “good financial and operational progress” so far in the second half of the financial year.
“Our online business has performed particularly well, with UK wagering 14 per cent ahead of last year, in spite of the absence of a major football tournament, and an acceleration in gaming growth.”
William Hill’ s global performance was mixed, with Australian revenue and wagers falling 2 per cent and 5 per cent respectively while its US arm delivered a 28 per cent rise in revenues and wagers up 33 per cent. Bowcock said that the company was set to make further investments in its digital business as par t of its turnaround plan.
He said :“We continue to make good progress on our transformation programme, which is on track to deliver £ 40 million of annualised savings by the end of this year.
“This is supporting reinvestment in our business, including marketing increases in t his second half to promote online’s reinvigorated product and customer experience.”
The update follows in Ladbrokes Coral’ s foot steps last week, with the rival also reporting strong growth from the digital business, which helped offset a drop in takings at its own retail stores.
But the betting industry is preparing itself for a further squeeze in light of increased regulation in the UK, with the government last month revealing plans to cut the maximum stake on fixed- odds betting terminals from £ 100 to between £ 50 and £ 2.
Bowcock said the company was looking forward to receiving“much-needed clarity” over the government’s review, which is out for consultation.
“We will contribute both directly and via the industry trade associations, emp hasising the need for evidence - based decision- making.
“Betting shops have a unique and positive role to play in supporting problem gamblers who typically use five or six gambling pro ducts,” t he chief executive said.
George Salmon, anequity analyst at Hargreaves L ans down, said that while William Hill’s digital growth in recent months was“particularly impressive ”, there remain “several daunting regulatory fences ahead” including Australia’s ban on extending lines of credit to punters, set to start in February.
But he said the greatest hurdle for William Hill will be the UK’ s clamp down on fixedodds betting terminals.
Salmon said :“The government consultation is still ongoing, but it’ s as much of a sure thing as anything in gambling that the new limit on stakes will be well below the current £ 100 cap. Slashing the maximum to just £ 2 is still among the favourites, and with machines responsible for millions in revenues each year, this would seriously impact the group’s bottom line.”
“We continue to make good progress on our transformation programme, which is on track to deliver £ 40 million of savings by the end of this year”
PHILIP BOWCOCK