UK-based bookmaker William Hill has reported a five per cent increase in net revenue in its retail sector compared with 2011 results.
Retail also produced a growth of two per cent in amounts wagered and eight per cent in operating profit. This benefited from gross win growth from both over the counter (OTC) and gaming machines.
The group saw strong year-on-year profit growth in the first quarter of the year, with net revenue up 12 per cent and operating profit up 19 per cent. This was driven by an excellent margin performance from retail together with continued strong growth from William Hill Online. The group's net debt for covenant purposes stood at £355m at the end of the period (£416m as at December 27, 2011).
Sportsbook net revenue was 58 per cent higher than in Q1 2011 with amounts wagered up 31 per cent and the gross win margin above the expected average at 8.8 per cent (Q1 2011: 7.3 per cent).
While OTC amounts wagered were two per cent lower, this was distorted by bad weather in February, with eight per cent fewer horse racing fixtures in Q1 than in the equivalent period last year. Excluding the impacted weeks, underlying OTC amounts wagered demonstrated resilience, up 0.7 per cent on Q1 2011. OTC net revenue was five per cent higher, benefiting from a strong gross win margin of 19.4 per cent (Q1 2011: 18.1 per cent). Machines gross win and net revenue were both up five per cent in the period. Gross win per machine per week was £918 (Q1 2011: £885).
In January, William Hill announced that Inspired Gaming Group would be the sole machine supplier to the retail estate. The roll-out of the new multiscreen Storm Plus machines to 21 per cent of shops currently not supplied by Inspired is under way and will be completed by the end of the first half. Trials of Storm Plus in 100 shops have shown a significant out-performance compared with the existing Storm estate.
Ralph Topping, CEO, commented: "I am pleased by our strong performance in the first quarter. Sportsbook wagering grew by 31 per cent, OTC wagering saw underlying growth after taking into account adverse weather during the quarter and sports results contributed to a strong margin."
