William Hill has posted a statutory loss before tax of £721.9m in 2018, following the previous year’s profit of £146.5m.
The impending reduction in maximum stakes on FOBTs to £2 in the UK led to a previously reported £882.8m cash impairment to the retail division, with overall exceptional charges and adjustments totalling £922.1m. This led in turn to a statutory loss of 83.6p per share.
Overall, William Hill’s net revenue was up by two per cent to £1.621bn during 2018, with adjusted operating profits from existing operations down by three per cent to £266.8m, in line with expectations.
The full-year dividend of 12p per share was down nine per cent on 2017’s 13.2p.
William Hill made significant progress in the US, with existing businesses delivering 42 per cent net revenue and the firm boasting a 34 per cent market share in the seven regulated states.
Online activities in the UK and internationally were up by 25 per cent with underlying net revenue up six per cent and operating profit rising 11 per cent prior to the impact of improved customer due diligence measures, which saw account closures costing the firm around £17m.
The company also said that it was “resilient” in retail prior to the FOBTs stake cut, with net revenue down by two per cent despite tough trading conditions on the UK high street.
William Hill’s strategy is based on three pillars: driving digital growth in the UK and internationally; growing a digital business of scale in the US; and remodelling UK retail.
Philip Bowcock, CEO of William Hill, said: "2018 was a busy and decisive year for us. Key regulatory decisions in the UK and US gave us much needed clarity to set a new five-year strategy and a goal to double profits by 2023. We have three businesses at different stages, with online growing in the UK and diversifying internationally, retail being remodelled in response to the new £2 stake limit, and rapid expansion in the US sports betting market. Underpinning this, we have taken a clear leadership stance around safer gambling with our Nobody Harmed ambition.
"Against this backdrop, we delivered a good underlying performance in Online, strong growth in the US existing business and a resilient retail outturn in the face of difficult high street conditions.
"We know the next few years will require careful navigating and investment, but with a clear strategy and diverse, experienced leadership teams in place we are ready to capitalise on the opportunities available to us."
