EGR Power 50 2020: William Hill (8)
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8. William Hill (7)
FINANCIALS: Closure of retail and halt to sport triggered a 32% year-on-year slump in H1 net revenue to £554.4m. Online revenue growth was sluggish at just 1%
STRATEGY & IMPACT: A renewed focus since Bengtsson’s appointment on overhauling the lagging product in a bid to bring digital up to scratch with rival offerings
GEOGRAPHIC REACH: Its foray into Nevada in 2012 positioned Hills for the US sports betting gold rush. The UK is still its largest market, although Mr Green boosts European presence
INFLUENCE & LEADERSHIP: William Hill has been a household name in the UK for decades, but that standing could be eroded considerably once Caesars offloads the non-US assets
Five magazine issues ago, a beaming Ulrik Bengtsson appeared on the cover of EGR Intel and waxed lyrical during a seven-page feature about how, as CEO, the Swede was reviving the operator’s fortunes. With his background in online gambling, including 18 months as Hills’ chief digital officer before his appointment to the top job in September 2019, he conceded execution and delivery on product had been the firm’s “Achilles heel for a long time”. However, he pointed to a slew of customer-facing product rollouts and iterations as a sign the business was turning a corner.
And although it’s true, the flagship William Hill app in particular is conspicuously smoother and intuitive – as well as just nicer on the eye than previous versions – the fact remains that the operator continues to be somewhat of a declining power in the sector. It’s a far cry from William Hill’s third-placed finish five years ago and runner-up spot the year before that in the Power 50. Despite flirtations with potential mergers in the recent past, the M&A merry-go-round has largely passed Hills by – aside from the purchase of Mr Green to boost its European diversification. But that was hardly a transformational deal.
This left the FTSE 250 firm underweight (seven times smaller than Flutter on market cap alone) and exposed as a potential takeover target. Of course, that is exactly what happened after our tête-à-tête with Bengtsson, when Caesars Entertainment tabled a £2.9bn bid. Following a brief battle with private equity fund Apollo Management, William Hill’s shareholders approved Caesars’ 272p cash offer in November. Caesars, which already owns 20% of William Hill’s US operations, plans to dispose of non-US assets, valued by Numis at £1.2bn, and tear off the juicy bits stateside.
Apollo is reported to be kicking the tyres on a potential acquisition of the non-US parts, as are fellow private equity firms and Betfred owner Fred Done – Hills’ largest shareholder with a 6% slice of the business. Carving off the US, you’re left with the UK retail estate, the online arms of UK and international (mainly Spain and Italy) and Mr Green. These are all sizeable businesses in their own right for potential suitors, although the public tug of war and subsequent carve-up of the 86-year-old bookmaker’s assets mean it may be the last time we see this iconic brand flying solo in the Power 50’s top 10.