William Hill Q3 online profits down 28%
Operator's digital profits fall by more than a quarter during an expansive period in which it acquired Australia and Spain-facing brands
William Hill has posted an online year-on-year operating profit loss of 28% for Q3 2013 due to a decline in revenues across all verticals coupled with a hike in operational costs.
In an interim management statement, the operator reported overall online net revenue was 2% lower during the 13-week period ending 1 October but remained up 11% for the year-to-date. Online operating costs were up 12%, which amounted to 26% of the online division’s total net revenue.
The operator said it was pleased with the progress of its online sportsbook, particularly the growth in football wagers, despite seeing overall net revenues fall 1%.
Mobile sportsbook continues to grow with turnover up 115%, which accounted for 41% of total sportsbook turnover. Mobile sportsbook margin stood at 7.4%.
All other verticals underperformed with casino, bingo and poker net revenues down 2%, 6% and 11% respectively. Overall gaming net revenue was down 3%. Gaming figures were also hit after the company lost around £2.5m to one customer during the month of August.
William Hill chief executive Ralph Topping (pictured) bemoaned sports results during the period but was keen to underline the operator’s strong performance on the mobile channel.
“During this quarter, results were not as favourable as in the comparable period, with outcomes “ particularly in football “ going the punters’ way,” Topping said.
“Our intensive attention to the development of mobile online continues to yield results, generating 41% of wagering in sportsbook. Mobile gaming is developing well, too, with net revenue growing by 126% in the quarter,” he added.
Last month, William Hill exercised a call option over the Spanish Miapuesta brand and commenced integration. The operator valued the cost of this process at £2m. Meanwhile, August saw the operator complete the acquisition of Australian online bookmaker Tom Waterhouse for an initial fee of £20m.
“This is a very good business with excellent prospects,” Topping said of the Tom Waterhouse purchase. “We’re in the process of turning it from a good business into a great business.”
Looking ahead, Topping said the impending 15 % Point of Consumption (PoC) levy held little fear for William Hill, despite the operator previously threatening legal action.
“PoC has a silver lining to it, it will increase our market share. We should do very well out of it in the medium to long-run. As a large organisation we’re in as good a place as most,” he said.