Online performance "outstanding" in Hills H1s
Online sportsbook turnover up 33% year-on-year " Playtech discussions continuing "amicably".
William Hill has recorded double-digit year-on-year revenue growth helped by an “outstanding” performance from its online sportsbook, the operator has revealed in its interim results for the 26 weeks ended 28 June.
Net revenues from online activities were up 30% compared to H1 2011, while turnover from its online sportsbook climbed 33% compared to the corresponding period last year, and operating profit from the channel rose 23% year-on-year to £68.9m.
Some 28% of sportsbook bets placed came from mobile devices, with mobile sportsbook turnover shooting up by 390% year-on-year. Group CEO Ralph Topping (pictured) said in a statement this morning that “Mobile remains a top priority and continues to outperform our expectations,” adding that it contributed 22% of online sports betting turnover and 11% of net gaming revenue in the first half of this year.
Playtech’s non-controlling interest from the William Hill Online joint venture rose 13.3% to £18.7m compared to £16.6m in the same period last year. The fourth quarter will see Hills given the option of exercising the first of its two call options to begin the acquisition of the London-listed software provider’s 29% stake, and the operator explained in a statement: “Our chairman and chief Executive continue to meet regularly with their counterparts on the Board of Playtech ahead of this. Discussions have been amicable and continue.”
Analyst Ivor Jones of Numis issued out a ‘Reduce’ recommendation this morning on the news, saying: “Until there is clarity [on the Playtech discussions] we are going to find it hard to be positive on the William Hill shares.
“It seems to us that a willing buyer and willing seller in the course of “amicable” discussions could agree a price for a transaction and avoid further enriching the investment banking industry by engaging three banks to come up with valuations,” he added.
This week eGaming Review revealed that William Hill’s Nevada-licensed business William Hill US appointed Nick Bogdanovich as its director of bookmaking, as well as selecting Bet Smart Media to run its dot.us website.
Topping said: “It was…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.”
Aside from its Nevada accreditation, Hills launched in the dot.es market during the half and expanded its Italian-facing operations through the launch of a live casino offering with Evolution Gaming.
However it also withdrew from Australia during the quarter, before last week making the decision to withdraw its sports betting offering from the German market in response to the country’s controversial State Treaty. It emerged days later that breakaway state Schleswig-Holstein would abolish its own licensing regime and fall in line with the remaining 15 Länder.
Towards the end of the quarter William Hill lost out to Pinnacle Entertainment on the acquisition of Federated Sports+Gaming following an auction in Washington DC.