Interim Results 2014
Record-breaking World Cup wagering drives second quarter operating profit1 growth
William Hill PLC (LSE: WMH) (William Hill or the Group) announces its interim results for the 26 weeks ended 1 July 2014 (H1 2014 or the period). The comparable period is the 26 weeks ended 2 July 2013 (H1 2013) unless otherwise stated.
|26 weeks ended
1 Jul 2014 (£m)
|26 weeks ended
2 Jul 2013 (£m)
Pre-exceptional profit before tax
Profit before tax
Profit after tax
Earnings per share - basic, adjusted6
Earnings per share - basic6
Dividend per share
(References are provided after the Directors' Responsibility Statement).
- Successful diversification continues, with 52% of operating profit1 from digital channels2 and 17% of revenues from international markets
- Record-breaking World Cup performance with Online wagering for the tournament up 211% on 2010
- Continued strong growth in Online Sportsbook turnover, up 41% with mobile wagering up 74% but net revenue growth rates diluted by less favourable sports results
- Online gaming net revenue growth continues apace, up 18%, benefiting from 146% growth in mobile gaming
- Retail net revenue3 flat and operating profit1 -7%, with the impact of less favourable sports results partly mitigated through effective cost control
- Australian operating profit4 near doubles as business progresses well with wagering4 up 10%, unique actives up 21%, new accounts up 14% and cost per acquisition down 36%
- Strong US performance with wagering +22% and operating profit1 up 383%
- Healthy interim dividend growth, up 8%
- James Henderson appointed CEO from 1 August
James Henderson, Chief Executive Officer of William Hill, commented:
"I am proud to be taking over from Ralph Topping as CEO. Serving the Company for 44 years, he has been instrumental in building the business into what it is today. I see William Hill as an innovative company with an excellent brand, a strong and diverse spread of businesses, a high level of customer understanding that allows us to bring customers an engaging and differentiated offer, good technological know-how and excellent cash generation.
"What excites me most is the potential for the business both in the UK and internationally as well as potential in both the digital world and on a multi-channel basis. We have an outstanding team whose insights are being applied to our international operations. With our scale, technology and first-rate team, there is a lot more we can do to drive revenues across our existing products and platforms.
"We will always face regulatory challenges given our focus on regulated markets, as well as volatility in sporting results. Greater diversity helps mitigate this risk. We have already strengthened our global reach with two home markets and evolving opportunities in Spain, Italy and the US. I believe this is the right strategy and I will be looking hard at how we can continue to create shareholder value in developing a focused but internationally orientated gambling group."
|William Hill PLC||James Henderson, Chief Executive Officer
Neil Cooper, Group Finance Director
Lyndsay Wright, Director of IR
|Tel: +44 (0) 20 8918 3614|
|Brunswick||Simon Sporborg / Fiona Micallef-Eynaud / Oliver Hughes||Tel: +44 (0) 20 7404 5959|
Analyst and investor presentation
|Meeting||Live conference call||Archive conference call||Video webcast|
|9.30 am BST at The Lincoln Centre, 18 Lincoln’s Inn Fields, London WC2A 3ED||Tel: +44 (0) 20 30598125. Password: William Hill||Tel: +44 (0) 121 260 4861. Passcode: 839 3773#. Available until 15 August 2014||www.williamhillplc.com. Available live and, until 31 July 2015, as an archive|
Debt investor conference call
|Live conference call||11.30 am BST. Tel: +44 (0) 20 3059 8125. Password: William Hill debt call|
|Archive conference call||Tel: +44 (0) 121 260 4861. Passcode 355 1956#. Available until 15 August 2014|
Notes to editors
William Hill, The Home of Betting, is one of the world's leading betting and gaming companies, employing more than 17,000 people. Founded in 1934, it is now the UK's largest bookmaker with around 2,370 licensed betting offices that provide betting opportunities on a wide range of sporting and non-sporting events, gaming on machines and numbers-based products including lotteries. The Group's Online business (www.williamhill.com) is one of the world's leading online betting and gaming businesses, providing customers with the opportunity to access William Hill's products online, through their smartphone or tablet, by telephone and by text services. William Hill US was established in June 2012 and provides land-based and mobile sports betting services in Nevada, and is the exclusive risk manager for the State of Delaware's sports lottery. William Hill Australia is one of the largest online betting businesses in Australia after the Group acquired the Sportingbet Australia business in March 2013 and tomwaterhouse.com in August 2013, two of the leading online corporate bookmakers in Australia, offering sports betting products online, by telephone and via mobile devices. William Hill PLC is listed on the London Stock Exchange. The Group generates revenues of c£1.5bn 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.