Search Share Prices
William Hill pleased with adjusted results and outlook
William Hill announced its final results for the 52 weeks ended 26 December on Friday, with adjusted net revenue rising 7% to £1.71bn.
The FTSE 250 bookmaking behemoth reported adjusted operating profit growth of 11% to £291.3m, while its profit before tax was ahea 19% at £254.9m.
Adjusted earnings per share were up 24% at 27.6p, and the board confirmed a 6% increase in the dividend per share to 13.2p.
On a statutory basis, the company swung to a loss of £43.7m from profits of £225.6m in the prior year, and a statutory loss before tax of £74.6m, compared to earnings of £181.3m in 2016.
Its statutory losses per share were 9.7p, swinging from earnings of 18.9p.
On the operational front, William Hill said it saw growth in its UK market share, with both online and retail growing at or above market growth rates.
In online, it saw double-digit growth in both sportsbook and gaming net revenue, while in retail it grew based on technology-led improvements in its shops.
Revenue growth was a strong highlight in its international business, with the board reporting a 29% improvement in US net revenue and a 24% uptick in adjusted operating profit in the country, as it continued to invest in "readiness" for a decision on the PASPA appeal, due in 2018.
William Hill's Australian business, acquired in 2013, was also undergoing strategic review to finish by mid-2018.
The board said the year was also one of "transformation" and technology programmes, with its transformation programme reaching the 2017 target of £25m in-year savings and £40m of annualised efficiency gains.
Its investment in technology delivered improved product development, marketing, business flexibility and efficiency during the period as well, it reported.
"William Hill begins 2018 in a stronger position after a year of significant change for the business," said chief executive Philip Bowcock.
"We continue to gain ground in the UK where customers are responding to our improved Online and omni-channel offers.
"We are a leader in sports betting in the US and are well positioned to benefit should more states start to regulate if the pending Supreme Court decision is positive."
Looking ahead, Bowcock said the company would invest in more innovation in online and its omni-channel platform, as well as in the US to ensure it can unlock the division's full potential at the correct moment.
He explained that a !key pillar" of the board's strategy would be to act in a sustainable way.
"While it is imperative that the gambling sector as a whole embraces this, there is no doubt that leading brands like William Hill must play a key role in setting the right standards and taking greater account of all our stakeholders.
"In the months ahead we will be taking a number of steps as a matter of urgency to ensure that we embed this approach in our business for the long term.
"Having transformed many areas of the business, momentum continues to build and the significantly strengthened leadership team is focused on delivering on the exciting growth opportunities that lie ahead of us."