Sports betting operator William Hill has described its own “good performance during period of substantial change” during the first half of 2018, after suffering a loss before tax of £820m.
Heavily wounded by the reduction in FOBTs stakes in the UK, the company related exceptional charge and adjustments of £916m in its report, including £883m in non-cash impairment to retail, following the government review which led to an impending reduction to £2 in FOBTs stakes.
However, William Hill also recorded good progress in the United States following the opening-up of sports betting. Net revenue was up 50 per cent, with adjusted operating profit up 132 per cent.
A positive World Cup performance recorded over 1m online customers, with online net revenue growth of 11 per cent. Online sportsbook performed well with net revenues of 18 per cent, 16 per cent from new accounts.
Retail net revenue was down three per cent in a “challenging environment” for the UK high street, including horse racing fixture cancellations in the first quarter.
During the period in the US, the first bet in New Jersey was accepted at William Hill's Monmouth Park sports book in June and a new sportsbook launched at Ocean Casino in Atlantic City. Deals were signed with 11 casinos in Mississippi and one in West Virginia to run sportsbooks, with plans to take the first sports bet in Mississippi this month.
The company received proceeds of £242m from the disposal of Australian business and investments in NYX and adjusted operating profit from existing operations were up one per cent to £131m.
With group net revenue up three per cent to £803m, the balance sheet remains “strong and flexible”, the company reported, with net debt for covenant purposes of £272m, four-fifths of EBITDA.
The interim dividend is in line with the prior year at 4.26p per share.
Philip Bowcock, CEO oatWilliam Hill, said: "William Hill has performed well during the first half of 2018 and, following major regulatory decisions in the UK and US, we now have greater clarity over the challenges and opportunities that lie before us. "During the first half, our online business continued to deliver double-digit growth. In retail, we are beginning to put in place plans to mitigate the impact of the (UK government’s) Triennial Review. In the US, we have moved quickly following the repeal of PASPA as we grow into newly regulating states. We will continue to invest in the US to ensure we are well placed to capture the substantial potential available to us.
"Fundamental to delivering over the long term will be our sustainability strategy, which marks a significant cultural change for the company. Gambling-related harm is a serious issue and it is important that we face up to this challenge. We have set ourselves the ambition that nobody is harmed by gambling and set out a detailed programme of actions as we start out on this journey."
