OVER THE HURDLES
Mixed bag in sport results for bookmaker
William Hill sees a move to online betting by punters as revenues rise
BOOKMAKER WILLIAM Hill reported mixed sporting results with a strong year for horse racing, but football returns came in lower than expected.
The group, which employs 1,300 people in Leeds, hailed a 16 per cent rise in online betting revenues since the start of the year thanks to a concerted push including the launch of a new app and website overhaul.
The firm is a major employer in Yorkshire, with more than a fifth of its global workforce in the region.
The group said online wagers rose 11 per cent in the UK during the 17 weeks to April 25.
William Hill said efforts to boost its online business continued to pay off after the group launched a new Android app and desktop site, while it saw a 24 per cent leap in new accounts set up across the key Cheltenham and Aintree horse racing festivals earlier this year.
The group confirmed an expected hit of around £5m to its online arm this year from the new 10 per cent levy on its UK horseracing gross win to fund UK horse racing, which came into effect last month.
The group’s overall net revenues rose 9 per cent year-onyear in the 17 weeks, with a more muted 1 per cent rise in turnover across its high street betting shops.
Philip Bowcock, the new chief executive of William Hill, said: “It has been a positive start to the year for William Hill across the board.
“Our online business continues to deliver growth thanks to the improvements in product, user experience and marketing we have made.”
William Hill said it was on track to make annual savings of £40m by the end of 2017 to reinvest in the business as part of an overhaul.
The revamp is also seeing the group deliver a global technology platform as it looks to catch up with rivals in the lucrative online betting market.
International growth is another key focus for William Hill, which has operations in the United States and Australia.
The group said net revenues rose 41 per cent in Australia and 19 per cent in the US over the first 17 weeks of 2017.
Analyst Greg Johnson at Shore Capital said: “William Hill has reported growth in wagering and net revenue across all four divisions for the 17 weeks to April 25.
“Overall, we see this as an encouraging update from William Hill, with continued improvement in its online operations, growth in its core international markets and a stable retail performance.”
Equity analyst George Salmon at Hargreaves Lansdown added: “They say the house always wins, but after something of a losing streak, it’s more about getting the house in order for new chief executive Philip Bowcock.
“The elephant in the room for the bookies is the looming uncertainty over fixed odds betting terminals.
“Calls for a crackdown on these machines are getting louder all the time, and with 30 per cent of net revenue coming from its fleet of gaming machines last year, increased regulation would certainly hurt.”
Our online business continues to deliver growth. Philip Bowcock, chief executive at William Hill