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William Hill Releases Fourth Quarter 2013 Financials

UK based betting firm William Hill has released its fourth quarter 2013 financial results, noting an increase in online and mobile betting revenues.

Key financial indicators for the fourth quarter ending December 31st, 2013 were:


  • Online total gaming net revenue increased by 14%.

  • Sportsbook :

  • amounts wagered showed strong growth of 38%.
  • Gross win margin of 8.1% reflecting an improvement on the 6.3% seen in Q3 (2012 Q4: 8.4%), net revenue increased 30%.

  • Mobile Sportsbook :

  • Stakes 92% higher than in 2012 and a gross win margin of 9.7%.

  • Gaming:

  • Net revenue was up 2%, with underlying 13 week growth of 4% after adjusting for market closures.

  • Mobile Gaming:

  • Net revenue was 199% higher than in 2012 and increased to 23% of Online’s total gaming net revenue.

Our investment programme is enabling the delivery of a high quality mobile gaming experience, with further product launches and the implementation of key enablers such as ‘single sign on’ and multiple payments, commented Ralph Topping , chief executive officer of William Hill.

Retail :

  • Net revenue grew 13%. Adjusting for Machine Games Duty (MGD), it was up 4%.
  • OTC net revenue was up 4% with amounts wagered down 2% but the gross win margin up strongly by 1.2%age points to 20.3%.
  • Gaming machine net revenue was up 24%; on an underlying basis1, it was up 3%.
  • Gross win per machine per week was up from £918 in 2012 to £920.

Australia :

The Sportingbet and tomwaterhouse.com businesses were both impacted by poor results in the peak Spring Carnival period, with 42% of favourites winning the group races through the carnival compared with 18% in 2012.

The company said operational improvement plans are progressing well regarding an improved user experience, digital capabilities and the marketing mix.

United States of America :

William Hill US had a strong quarter, ending William Hill's first full year of ownership, with amounts wagered up 34% (13 week basis +47%) and net revenue more than 150% (13 week basis over 250%) ahead of Q4,2012 following an 8.3% gross win margin, recovering from the very weak comparative in 2012 (4.2%, 13 week basis 3.4%).

Commenting on his company's performance William Hill CEO Ralph Topping said, “Q4 proved a strong end to the year as we enjoyed continued momentum in Sportsbook with 38% more wagered in Q4 on a 13 week basis than last year. “This demonstrates our competitive strength in Online ahead of the expected introduction of the Point of Consumption tax in December 2014."

“We made good progress on key initiatives in the quarter: improving our mobile gaming offer, rolling out the Eclipse gaming machine to over a third of our estate and continuing to enhance Australia ’s digital capabilities. It is also pleasing to see a turnaround in the profitability of our US business in our first full year of ownership.”

Will Hill also released full year results, noting:

  • Group net revenue increased 16% (52 week basis +18%). Adjusting for MGD, it was up 10% (52 week basis +12%).

  • Retail net revenue was up 8% (52 week basis +10%) or flat adjusting for MGD (52 week basis +2%)

  • Online net revenue was up 10% (52 week basis +12%).

  • Group Operating profit is expected to be around £334 million.

  • Full year defined amortization is now expected to be c£11 million.

  • Exceptional items are expected to total £18.6 million; in line with previous guidance with the exception of a fall in value of £1.4 million on our investment property portfolio.

  • Group net debt for covenant purposes stood at around £800 million at 31 December 2013.

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