William Hill eyes US growth as Online revenues climb 13%
CEO Philip Bowcock highlights US opportunities as the operator's digital arm reports double-digit full-year growth
William Hill today announced a 13% year-on-year rise in 2017 revenues following double-digit growth from both sports betting and gaming.
The London-listed operator’s full-year Online revenues climbed to £616.9m, up from £544.8m in 2016, as sportsbook net revenue increased 14% to £308.3m.
The growth in sports betting followed a 0.4 ppts rise in the gross win margin to 7.6% as amounts wagered climbed 10% to £4.7bn following improvements to mobile and marketing.
Meanwhile, the company’s gaming arm also reported double-digit growth with revenues increasing 12% year-on-year to £308.6m, with core markets up 13% and non-core markets up 10%.
William Hill CEO, Philip Bowcock, praised the work of the operator’s Online team during 2017, and picked out the US sports betting market as a specific opportunity for future growth.
The operator currently has 108 sportsbooks in Nevada (57% market share by number of locations) as it eagerly awaits the US Supreme Court’s decision on New Jersey’s case to repeal PASPA.
“William Hill begins 2018 in a stronger position after a year of significant change for the business,” Bowcock said.
He added: “We continue to gain ground in the UK where customers are responding to our improved Online and omni-channel offers.
“We are a leader in sports betting in the US and are well positioned to benefit should more states start to regulate if the pending Supreme Court decision is positive.
“Looking ahead, we will invest in more innovation in Online and our omni-channel platform, as well as in the US to ensure we can unlock its full potential at the right moment.”
US net revenue climbed 29% and adjusted operating profit jumped up 24%.
Australian revenues grew 5% for the full year but declined in the second half as Hills slashed marketing spend in connection with its exploration of a sale.
As a result adjusted operating profit ticked up 14%.
Group operating profits, which Hills said gave a clearer picture of underlying performance, were up 11% to £291.3m, supported in particular by the growth in Online and US businesses.
In related news, the operator today also announced Online MD Crispin Nieboer will take up a new role as group corporate development director, tasked with leading its international growth strategy and US market expansion in particular.
William Hill’s share price was dwon 1% to 325.6p on the London Stock Exchange at the time of writing.