William Hill PLC - Interim Results
Successful first half sees double-digit revenue and profit growth
William Hill PLC (LSE: WMH) (William Hill or the Group) announces its interim results for the 26 weeks ended 26 June 2012 (H1 2012 or the period). The comparator period is the 26 weeks ended 28 June 2011 (H1 2011).
|
26 weeks ended |
26 weeks ended |
Change vs | |
|---|---|---|---|
|
Net revenue |
£627.8m |
£567.8m |
+11% |
|
- Retail net revenue |
£417.4m |
£398.8m |
+5% |
|
- Online net revenue |
£198.4m |
£152.7m |
+30% |
|
Operating profit(1) |
£167.8m |
£147.7m |
+14% |
|
Pre-exceptional profit before tax |
£150.3m |
£129.5m |
+16% |
|
Profit before tax |
£143.3m |
£126.9m |
+13% |
|
Profit after tax |
£117.9m |
£102.7m |
+15% |
|
Earnings per share – basic, adjusted(2)(3) |
15.0p |
12.8p |
+17% |
|
Earnings per share – basic(2) |
14.1p |
12.3p |
+15% |
|
Dividend per share |
3.4p |
2.9p |
+17% |
(1)Operating profit is defined as pre-exceptional profit including associates and excluding interest, tax and £1.8m (2011: £1.8m) of Online amortisation relating to trade names, affiliate relationships and non-competition agreements (see note 17)
(2)Basic EPS is based on an average of 701.8 million shares for 2012 and an average of 698.3 million shares for 2011
(3)) Adjusted EPS is stated before exceptional items and £1.8m (2011: £1.8m) Online amortisation relating to trade names, affiliate relationships and non-competition agreements
Key points:
- Group net revenue +11% and Operating profit1 +14% with innovation and investment driving market share gains by William Hill Online
- Good Retail performance drives +5% net revenue growth in both over-the-counter (OTC) betting and gaming machines, and Operating profit1 +6%
- Outstanding William Hill Online performance with Sportsbook turnover 33% ahead of H1 2011, overall net revenue +30% and Operating profit1 +23%
- Mobile Sportsbook turnover up +390%, 28% of total Sportsbook betting in June via mobile
- Basic adjusted earnings per share and dividend +17%
- Nevada licences awarded to William Hill and William Hill US formed through completion of three previously announced US land-based acquisitions
- International expansion continues with award of online licence in Spain, launch of Spanish regulated site (www.williamhill.es) and expansion of Italian regulated site (www.williamhill.it)
- Continued strong cash flow from operations reduces net debt for covenant purposes by £61m to £355m against 27 December 2011
Ralph Topping, Chief Executive of William Hill, commented:
"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."
| Analyst and investor presentation | |||
| Meeting: 9.00 a.m. BST on 27 July 2012 The Lincoln Centre 18 Lincoln's Inn Fields London WC2A 3ED |
Live conference call: Tel UK: 0845 634 0041 Tel int'l: +44 (0) 20 8817 9301 Passcode: 7933418 |
Archive conference call (until 3 August 2012) Tel: +44 (0) 20 7769 6425 Passcode: 7933418# |
Video webcast: |
A separate conference call will be held at 11.00 am BST for debt analysts and investors. Dial-in details are:
UK telephone: 0845 634 0041
International Telephone: +44 (0) 20 8817 9301
Passcode: 7933425
Archive of the debt call:
Telephone: +44 (0)20 7769 6425
Passcode: 7933425#
| Enquiries | ||
| William Hill PLC | Ralph Topping, Chief Executive Neil Cooper, Group Finance Director Lyndsay Wright, Director of IR |
On 27 July: +44 (0) 20 7404 5959 Thereafter: +44 (0) 20 8918 3614 |
| Brunswick | Simon Sporborg Sophie Brand Oliver Hughes |
Tel: +44 (0) 20 7404 5959 |
Notes to editors
William Hill, The Home of Betting, is one of the world's leading betting and gaming companies, employing more than 15,000 people. Founded in 1934, it is now the UK's largest bookmaker with 2,370 licensed betting offices (LBOs) that provide betting opportunities on a wide range of sporting and non-sporting events, gaming on machines and numbers-based products including lotteries. William Hill Online (www.williamhill.com) is one of Europe's leading online betting and gaming businesses, providing customers with the opportunity to access William Hill's products online, through their mobile, by telephone and by text services. William Hill PLC is listed on the London Stock Exchange and generates revenues of over £1.1bn a year.
Cautionary note regarding forward-looking statements
These results include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout these results and the information incorporated by reference into these results and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond William Hill's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in these results and/or the information incorporated by reference into these results. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates, are consistent with the forward-looking statements contained in these results and/or the information incorporated by reference into these results, those results or developments may not be indicative of results or developments in subsequent periods.
Other than in accordance with its legal or regulatory obligations (including under the Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), William Hill does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.