UK based betting firm William Hill plc has published its full year 2013 financial results,noting lower costs and higher net revenues.
Key financial indicators for the year ending December 31st, 2013 were:
Net revenue up 18% to £1,486.5 million;
Retail (land) net revenue up 10% to £907 million;
Online (digital) net revenue up 12% to GBO 446.3 million;
Profit before tax down 6% at £257 million;
Profit after tax down 1% at 226.5 million.
Operational highlights for the year were:
Increasing diversification of revenue streams with Online and Australia representing 48% of operating profit and international markets increasing to 15% of net revenue
Successful completion of the full William Hill Online acquisition in April 2013.
Greater investment in Online operations, capitalizing on the mobile gaming opportunity with 166% growth in mobile gaming net revenue (up 175% over the 52 weeks) and with new products and key user experience enablers introduced
William Hill.it and William Hill.es successfully increasing online market share in Italy and Spain; mobile launched in Italy and successful integration of Miapuesta brand in Spain
Second home market established in Australia with completion of Sportingbet and Tom Waterhouse.com acquisitions. Good progress on improvement plan with imminent launch of new Sportingbet.com.au website and preparations ongoing to migrate Tom Waterhouse.com onto William Hill Australia technology platform
Profitability achieved in US business in first full year of ownership
Strong net cash inflow from operating activities of £268 million
Commenting on the performance of his company. William Hill CEO Ralph Topping said: "In 2014 we are celebrating the 80th anniversary of William Hill. Our focused transformation of the Group over the last five years means William Hill is now one of the world’s leading multi-channel betting and gaming businesses, with revenues diversified through the rapid growth of Online and through careful expansion into selected international markets."
“This transformation accelerated in the last 12 months with the Group establishing a second home market in Australia through the acquisitions of Sportingbet and tomwaterhouse.com, and acquiring the 29% of William Hill Online controlled by Playtech, while maintaining an appropriate capital structure through a well-supported £373 million (net) rights issue and a £375 million corporate bond issue. As a result, our Online and Australia activities accounted for around half our operating profit and international markets contributed 15% of net revenue in 2013."
“Online’s Sportsbook performance continues to be sparkling, with staking levels up around 400% over the five years since the start of 2009. Mobile Sportsbook represents 39% of Sportsbook wagering in 2013. We put greater focus behind mobile gaming in 2013 and have made good progress in bringing our offer up to match the high standards we've set with our Sportsbook. Our product range is vastly expanded and the customer experience is greatly enhanced, with more improvements to come in 2014. The results reflect this, with mobile gaming net revenue growing by 175% on a 52 week basis."