6. William Hill (2018)
Financials: Online net revenue rose just 4% year to date. Digital profits are expected to slump by £20m this year and £25m in 2019 due to regulatory changes
Strategy & impact: A renewed focus on mass-market customers and improvements to proprietary digital products. A $70m tech back-end for William Hill US is under construction
Geographic reach: The operator is going all-in on US sports betting and MRG acquisition provides international diversification, albeit mainly from Europe’s grey markets
Influence & leadership: The 84-year-old bookmaker remains a powerful brand, while the appointment of former Betsson CEO Ulrik Bengtsson seems a particularly shrewd move[/su_box]
The wave of industry consolidation at the top of the Power 50 over the past few years was always notable by the absence of UK bookmaker William Hill. Indeed, for a company that was once one of the early market pacesetters in the online space, Hills could only look on as many of its rivals consolidated, built scale and overtook the operator in the rankings.
But just as this year’s Power 50 was being compiled, the London-listed operator announced it had swooped in to acquire Mr Green owner MRG Group as part of a £242m deal. The acquisition, while it has been recommended by the MRG board to shareholders, has yet to be completed and thus is not included as part of Hills’ Power 50 entry. However, the deal will provide William Hill with some much-needed international diversification, albeit predominantly from European grey markets, and the company has said it will use MRG’s Malta office to spearhead its international strategy following Brexit.
Given the level of ongoing regulatory pressure it’s feeling in the UK market at the minute, it was really only a matter of time before Hills got in on the M&A action. It’s also not the only bit of wheeling and dealing the firm has completed in 2018, having finally rid itself of the distraction of its Australian business after offloading it to CrownBet for £169m back in March.
Substantial growth though has proven rather elusive for William Hill Online – net revenue was up just 4% year to date in its last trading update – but it has been making a concerted effort to move towards a more mass-market approach and improvements to its digital proposition are there for all to see. New digital chief Ulrik Bengtsson, who no doubt played a key role in the MRG deal given his Scandinavian roots at Betsson, has been busy assembling a new senior online team to help Hills fulfil its ambitions.
However, it’s the US market where arguably the biggest opportunity lies for William Hill over the next few years. And the operator is already a market leader across the pond with a growing Nevada business and a deal with casino operator Eldorado Resorts giving it access to 13 new states.