Corporate By William Hill PLC

2018 Half-year results

Good performance during period of substantial change

William Hill PLC (LSE: WMH) (William Hill or the Group) announces its half-year results for the 26 weeks ended 26 June 2018 (the period or H1 2018). Comparatives relate to the 26 weeks ended 27 June 2017.

 

Statutory results

Adjusted results

 

H1 18
£m

H1 17
£m

Change
%

H1 18
£m

H1 17
£m

Change

%

Net revenue

802.6

778.5

+3%

802.6

778.5

+3%

Existing operations adjusted operating profit1

-

-

-

130.8

128.9

+1%

US Expansion operations2

-

-

-

(17.2)

-

-

Adjusted operating profit3

-

-

-

113.6

128.9

-12%

Discontinued operations – Australia4

-

-

-

3.8

0.6

-

(Loss)/profit before interest and tax

(802.3)

108.6

-

-

-

-

(Loss)/profit before tax

(819.6)

93.1

-

96.3

110.6

-13%

(Loss)/earnings per share (p)5

(93.5)

9.4

-

9.1

11.1

-18%

Dividend per share (p)

4.26

4.26

0%

4.26

4.26

0%

 

Financial results

  • Group net revenue up 3% to £802.6m
  • Adjusted operating profit from existing operations1 up 1% to £130.8m
  • Exceptional charge and adjustments of £915.9m including £882.8m non-cash impairment to Retail following Triennial Review decision leading to a statutory loss before tax of £819.6m
  • Proceeds of £241.7m received from disposal of Australian business and investments in NYX
  • Balance sheet remains strong and flexible with net debt for covenant purposes6 of £272.4m, 0.8x EBITDA
  • Interim dividend in line with prior year at 4.26p per share

Operating highlights

  • Good FIFA World Cup performance with >1 million Online actives across the tournament
  • Total Online net revenue growth of 11%
  • Online Sportsbook performed well with net revenues +18% and new accounts +16%
  • Online gaming net revenue growth +4% with continuing improvements in cross-sell
  • Retail net revenue down 3% in a challenging environment for the UK high street, with horseracing fixture cancellations in Q1
  • Continued strong growth in existing US business: net revenue up 50% and adjusted operating profit3 up 132%
  • Responding rapidly to new US opportunities:
  • First bet in New Jersey accepted at William Hill’s Monmouth Park sports book in June, new sports book launched at Ocean Casino in Atlantic City and readying for mobile launch this month
  • Expanded offering in Delaware, as risk manager for the state lottery
  • Deals signed with 11 casinos in Mississippi and one casino in West Virginia to run sports books and plans to take the first sports bet in Mississippi in August
  • New sustainability strategy established with long-term ambition that nobody is harmed by gambling

Philip Bowcock, Chief Executive Officer of William Hill, commented:

“William Hill has performed well during the first half of 2018 and, following major regulatory decisions in the UK and US, we now have greater clarity over the challenges and opportunities that lie before us.

“During the first half, our Online business continued to deliver double-digit growth. In Retail, we are beginning to put in place plans to mitigate the impact of the Triennial Review. In the US, we have moved quickly following the repeal of PASPA as we grow into newly regulating states. We will continue to invest in the US to ensure we are well placed to capture the substantial potential available to us.

“Fundamental to delivering over the long term will be our sustainability strategy, which marks a significant cultural change for the company. Gambling-related harm is a serious issue and it is important that we face up to this challenge. We have set ourselves the ambition that nobody is harmed by gambling and set out a detailed programme of actions as we start out on this journey.” 

Notes 

  1. Existing operations adjusted operating profit is defined as profit before interest and tax, excluding exceptional items and other defined adjustments, and excluding US Expansion operations in states we have entered since the Supreme Court overturned PASPA. Further detail on adjusted measures is provided in note 3 to the financial statements within our 2017 Annual Report
  2. Adjusted operating profit from US Expansion operations are in states where we have entered since the Supreme Court overturned PASPA..
  3. Adjusted operating profit is defined as profit before interest and tax, excluding exceptional items and other defined adjustments. Further detail on adjusted measures is provided in note 3 to the financial statements within our 2017 Annual Report.
  4. Adjusted operating profit for the period up to 23 April 2018 when the disposal of the Australian business completed
  5. Basic EPS is based on an average of 858.7 million shares for 2018 and an average of 856.8 million shares for 2017. Adjusted EPS is based upon adjusted profits after tax.
  6. Net debt for covenant purposes and EBITDA for covenant purposes are non-statutory measures. The basis of calculation is as described in note 23 to the financial statements within our 2017 Annual Report.
  7. Definitions are provided in the glossary at the back of the document.
  8. Numbers are presented on an adjusted basis unless otherwise stated. 

 

Enquiries

 

William Hill PLC

Lyndsay Wright, Director of Strategy and Sustainability Tom Randell, Head of Investor Relations Ciaran O’Brien, Director of Corporate Communications

 Tel:+44 (0) 20 7612 3000

Brunswick

Andrew Porter / Chris Buscombe

Tel: +44 (0) 20 7404 5959

 

Analyst and investor presentation

 

Meeting

Friday, 3 August 2018 at 9.00 am BST Radisson Blu Edwardian Hotel, 9-13 Bloomsbury Street, WC1B 3QD

Live
conference call

Tel: +44 (0) 20 3936 2999
Access code: 299676

Archive
conference call

Tel: +44 (0) 20 3936 3001.
Access code: 077465#. Available until 10 August 2018

Video webcast

www.williamhillplc.com

 

Debt investor conference call

 

Live
conference call

11.00 am BST. Tel: +44 (0) 20 3936 2999.

Pass code: 494191

Archive
conference call

Tel: +44 (0) 20 3936 3001.
Passcode 954551#.
Available until 10 August 2018

 

Notes to editors 

William Hill is one of the world's leading betting and gaming companies, employing around 16,000 people. Founded in 1934, it aims to provide gamblers with a fun and safe gambling experience, and has set the ambition that nobody is harmed by gambling. It is one of the UK's largest bookmakers with around 2,340 licensed betting offices that provide betting opportunities on a wide range of sporting and non-sporting events, and gaming on machines, providing customers with the opportunity to access William Hill's products online, through their smartphone or tablet. William Hill US was established in June 2012 and provides land-based and mobile sports betting services in Nevada and New Jersey, and is the exclusive risk manager for the State of Delaware's sports lottery. William Hill PLC is listed on the London Stock Exchange and is a member of both the FTSE 250 and FTSE4Good Indices.

Cautionary note regarding forward-looking statements

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

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 Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance 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.

 

Download full 2018 Half-year results statement in PDF format