Today, the leading UK gambling operator William Hill posted its latest trading update for the unaudited six months of the year and the full-year ended on October 24th 2017.
The company highlighted its financial and operational progress over the second half of the year, reporting that both its retail net revenue and online net revenue rose over the above-mentioned period.
Philip Bowcock, the Chief Executive Officer of William Hill, particularly praised the company for its online business performance, saying that UK wagering was 14% ahead of last year, regardless of the fact there was not a major football tournament in 2017. He further revealed that the retail operations of the company delivered both gaming net revenue and Sportsbook revenue increase. The US division of William Hill continued to perform well, delivering a strong double-digit net revenue increase.
Mr. Bowcock further explained that the British gaming operator continued making progress on its transformation programme and the supporting reinvestment in the company’s business.
William Hill revealed that its online net revenue rose by 6%, and its gaming new revenue increased by 14%. As mentioned above, the UK gambling operator further revealed that its retail net revenue rose by 3%, marking a growth in both its gaming and Sportsbook operations.
The US unit of the company marked a stable 30% net revenue growth in local currency.
Negative Effects of UK Gambling Crackdown Could Be Overcome
It is the performance of the online operations and the US division of the company which could turn out to be quite beneficial for William Hill over the upcoming year, too. As Casino Guardian has previously reported, the upcoming crackdown on fixed-odds betting terminals (FOBTs) across the UK is expected to hit the industry operators’ results. Some companies, which own a large number of machines, are the most likely to become potential victims of the scrutiny imposed by the Government and the gambling regulatory authorities on operators.
The massive revenue increase registered by the company’s US division and the great progress made by its online operations could help the British operator compensate for the expected losses as a result of the crackdown that is to be imposed by the British Government on the local gambling industry with the reduction of the FOBTs maximum stakes allowed.
The increased money flow could be also great in case of a potential merger between William Hill and another company, as the proceeds could be used to fund such a deal. For some time now, the UK gambling operators has been looking for opportunities for expansion, so a possible merger with The Stars Group has been reported. Such a deal could be lucrative for both parties, as the Canadian group would bring new innovation to a newly-formed entity, while William Hill would contribute with its long-year experience on the UK gambling market.
The two companies had some talks back in 2016, discussing a possible merger to create a international gambling behemoth worth around £5 million and operating under several jurisdictions worldwide. At the time, the negotiations were not successful, as the shareholders of William Hill were not happy with the deal’s conditions, especially taking in consideration the large financial burdens of The Stars Group.
Still, that page may not be closed forever, and it is quite possible for the two companies to re-consider the opportunities they could get as a result of joining forces.
- Author
Olivia Cole
