TIDMWMH
RNS Number : 1303U
William Hill PLC
21 November 2019
William Hill PLC Trading Statement
Trading in line with expectations
21 November 2019
William Hill PLC (LSE: WMH) (William Hill or the Group)
announces a trading update for the unaudited 17 weeks and 43 weeks
to 29 October 2019 (3 July to date and year-to-date). Comparatives
relate to the equivalent weeks in 2018.
Operating highlights:
-- The Group is trading in line with full year expectations with
net revenue up 1% in the period
-- Online UK net revenue grew +4% on a pro forma basis(1) ,
consistent with the market growth rate
-- Retail like-for-like net revenue fell 16% since the half
year. Executing our remodelling strategy to mitigate the impact of
the GBP2 stake limit saw the closure of c.700 shops
-- US net revenue increased 60% as the market continues to grow;
we went live in Indiana and Iowa
-- Further progress on player safety with the launch of the Safer Gambling Commitments
In GBP H2 to date (3 Jul to 29 Oct Year to date (to 29 Oct 2019)
terms 2019)
---------------------------------------------------------------- ---------------------------------------------
Total Gaming Sportsbook Sportsbook Change Total Gaming Sportsbook Sportsbook Change
net net amounts gross in net net amounts gross in
revenue revenue wagered win gross revenue revenue wagered win gross
margin win margin win
margin margin
-------- -------- ----------- ----------- --------- -------- ----------- ----------- -------
+0.6 +0.1
Online +26% +51% -7% 8.1% ppts +19% +44% -7% 8.1% ppts
+1.1 +0.4
Retail -23% -45% -1% 18.3% ppts -16% -33% +2% 18.3% ppts
+0.2 -0.6
US Existing +27% +24% 7.5% ppts +13% +24% 6.9% ppts
+2.7 +1.5
US Expansion +200% +125% 8.2% ppts +391% +338% 7.4% ppts
-------- -------- ----------- ----------- ------- --------- -------- ----------- ----------- -------
Group (excl.
discontinued
operations) +1% -8% +2% +1% -3% +4%
-------------- -------- -------- ----------- ----------- ------- --------- -------- ----------- ----------- -------
Online
In the trading period Online net revenue grew 26%, with gaming
net revenue +51% and sportsbook net revenue +1%. Adjusting for the
acquisition of Mr Green, on a pro forma basis(1) Online net revenue
grew 1%.
Online UK, which now comprises two thirds of the Online
division, has shown growth for the second quarter in a row. On a
pro forma basis(1) net revenue grew 4% for the period, consistent
with the market growth rate.
Online International net revenue fell 4% on a pro forma basis(1)
. The integration of Mr Green is well underway and the transaction
has performed in line with expectations. However, there were a
number of regulatory headwinds during the period, most notably the
closure of Switzerland while other European markets experienced
disruption to payment methods. Nonetheless, the majority of regions
in the underlying International business are delivering good
growth.
In line with the digital strategy to deliver a strong product
and a more personalised customer experience, a number of new
technology developments are scheduled for release. A new sportsbook
front end for Italy and Spain will launch in the fourth quarter
replacing the current third party solution and a single wallet
solution for Spain will roll out towards the end of the year. The
Group will deploy a modular platform architecture; the Smart Data
Platform will launch early in the new year, a component which is
already in use in the US.
Retail
On a like-for-like basis Retail net revenue fell 16%, in line
with expectations, driven by gaming net revenue -39% and offset by
sportsbook net revenue +13% as we continued to see some customers
substitute sports betting for gaming activities. Gaming trends are
improving incrementally as customer behaviour adjusts following the
implementation of the GBP2 maximum staking limit.
The Retail business executed the remodelling strategy put in
place to mitigate the effect of the Triennial Review. During the
period c.700 shops were closed as the Group acted decisively to 'do
it once and do it right'. These disciplined and necessary actions
have provided certainty for our employees and allowed us to resume
our focus on the future. The estate now consists of c.1600 shops
and, while still too early to establish a trend, the underlying
results are consistent with our existing guidance.
William Hill US
The US business continues to deliver on its retail and mobile
strategy to be a US market leader, generating strong growth with
net revenue increasing +60% (+53% on a local currency basis). US
Expansion net revenue tripled, driven by the opening of new states,
while our Nevada business remains strong, generating 27% growth
(+22% on a local currency basis).
It is now 18 months since PASPA was overturned and the US sports
betting market continues to exhibit strong growth with 13 states
accepting legal wagers. During the 17 week period we went live in
Indiana and Iowa and we have now taken wagers in 10 states with a
market share of 26%.
During the period our new purpose built digital platform went
live as planned ahead of the NFL season and we are pleased with its
early performance. On 3 October William Hill formed an exclusive
partnership with Monumental Sports & Entertainment to open a
sportsbook at the Capital One arena in Washington D.C.
In anticipation of Eldorado Resorts closing the acquisition of
Caesars Entertainment, we are preparing to bring operation of the
existing Caesars sports books into the William Hill network,
subject to regulatory approval.
Safer Gambling Commitments
On 6 November we saw the launch of a new representative body for
the UK's betting and gaming industry, the Betting and Gaming
Council (BGC). This represents around 90% of the industry by
revenue, including betting shops, online betting and gaming
businesses and casinos, bringing together the combined resources of
the industry to meet the challenges of responsible gambling and
regulatory compliance.
In tandem with the launch of the BGC, the Chief Executives of
the leading gambling companies in the UK, including William Hill,
announced a package of Safer Gambling Commitments. These five
commitments, with 22 initial actions, provide a measurable
framework that supports the UK Gambling Commission's national
strategy to address issues related to gambling. They will deliver
ongoing improvements in how gambling companies are run in the UK
and how they empower, protect and support their customers.
The five core Safer Gambling Commitments are targeted to:
Prevent underage gambling and protect young people; Increase
support for treatment of gambling related harm; Strengthen and
expand codes of practice for advertising and marketing; Protect and
empower our customers and; Promote a culture of safer gambling.
Ulrik Bengtsson, CEO, commented:
"During my first months as CEO I have been focused on how we can
improve our competitiveness whilst ensuring we continue to deliver
on our strategic ambitions and I am pleased to confirm we remain on
track to meet our full year expectations. We have simplified our
structure around our geographical markets, appointed a Chief
Technology and Product Officer and introduced a new role of Chief
Operating Officer to enable improved customer alignment, execution
and drive operational efficiency.
"In the US our business has gone from strength to strength. We
have excellent market access, a valuable partnership with Eldorado
and we are excited about the potential that is presented by the
combination with Caesars.
"We have remodelled the UK retail estate, while the UK Online
business has benefited from a series of customer facing
improvements evidenced in the stabilising market share in the last
two quarters. In addition, we expect our International Online
business to benefit from a number of important product improvements
that will be delivered over the coming quarters.
"We undoubtedly have great people and a shared vision at William
Hill. Our job now is to push on and do even better in terms of
customer focus and execution."
Notes
1. Where pro forma results are stated, this assumes that Mr.
Green was consolidated into the group at the end of January 2018,
in order to provide a more meaningful comparator period.
Analyst conference call
Ulrik Bengtsson, CEO, and Ruth Prior, CFO, will host a
conference call for analysts at 9:00 a.m. GMT today. Dial-in
details for the call are:
Telephone: +44 20 3936 2999
Participant code: 647075
An archive of the call will be available until [x] November
2019. Dial-in details for the archive call are:
Telephone: +44 20 3936 3001
Replay code: 387527
An audio webcast of the call will be available at:
https://www.investis-live.com/william-hill-plc/5daf05c5e231010d00485e06/erre
OAM: Additional Regulated Information
William Hill LEI: 213800MDW41W5UZQIX82
Enquiries
============= ============================== ===========================
William Hill Louise Turner-Smith, Director Tel: +44 (0) 20 7612 3251
of Investor Relations Tel: +44 (0) 20 7612 3492
Ciaran O'Brien, Director
of Corporate Communications
Brunswick Andrew Porter / Sam Chiene Tel: +44 (0) 20 7404 5959
About William Hill
===================
William Hill PLC is one of the world's leading betting and
gaming companies, employing 12,500 people. Its origins are in the
UK where it was founded in 1934, and where it is listed on the
London Stock Exchange. The majority of its GBP1.6bn annual revenues
are still derived from the UK, where it has a national presence of
licensed betting offices and one of the leading online betting and
gaming services. William Hill's European Online business is
headquartered in Gibraltar and Malta, and is licensed online in 10
countries following the acquisition of Mr Green & Co AB in
January 2019. In 2012, it established William Hill US with a focus
on retail and mobile operations in Nevada and became the largest
sports betting business in the US. Following the ruling in May 2018
by the Supreme Court that the federal ban on state sponsored sports
betting was unconstitutional, William Hill US has expanded and
continues to expand as new states regulate sports betting. It is
now operating in nine states: Delaware, Indiana, Iowa, Mississippi,
Nevada, New Mexico, New Jersey, Rhode Island and West Virginia in
addition to Washington DC. Eldorado Resorts, Inc. currently owns
shares representing 20% of the share capital of William Hill US
Holdco, Inc., the holding company of William Hill US.
Cautionary note regarding forward-looking statements
=====================================================
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates",
"anticipates", "expects", "intends", "plans", "goal", "target",
"aim", "may", "will", "would", "could" or "should" or, in each
case, their negative or other variations or comparable terminology.
These forward-looking statements include all matters that are not
historical facts. They appear in a number of places throughout
these results and the information incorporated by reference into
these results and include statements regarding the intentions,
beliefs or current expectations of the directors, William Hill or
the Group concerning, amongst other things, the results of
operations, financial condition, liquidity, prospects, growth,
strategies and dividend policy of William Hill and the industry in
which it operates. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future and
may be beyond William Hill's ability to control or predict.
Forward-looking statements are not guarantees of future
performance. The Group's actual results of operations, financial
condition, liquidity, dividend policy and the development of the
industry in which it operates may differ materially from the
impression created by the forward-looking statements contained in
these results and/or the information incorporated by reference into
these results. In addition, even if the results of operations,
financial condition, liquidity and dividend policy of the Group and
the development of the industry in which it operates, are
consistent with the forward-looking statements contained in these
results and/or the information incorporated by reference into these
results, those results or developments may not be indicative of
results or developments in subsequent periods. Other than in
accordance with its legal or regulatory obligations (including
under the Market Abuse Regulation (596/2014), the Listing Rules,
the Disclosure Guidance and Transparency Rules and the Prospectus
Rules), William Hill does not undertake any obligation to update or
revise publicly any forward-looking statement, whether as a result
of new information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTFEFFUSFUSEIF
(END) Dow Jones Newswires
November 21, 2019 02:00 ET (07:00 GMT)
William Hill (LSE:WMH)
Historical Stock Chart
From Apr 2024 to May 2024
William Hill (LSE:WMH)
Historical Stock Chart
From May 2023 to May 2024