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William Hill plc Q1-2014 Earnings results

Friday April 25 ,2014 : BRIT BOOKIE DELIVERS A STRONG QUARTERLY
 
Online channel continues to work well for William Hill plc, but tax increases to result in betting shop closures.
 
Britain's largest online and land bookmaker William Hill plc has posted another impressive set of first quarter results, highlighting:
 
* Strong underlying growth but football results that adversely impacted margins.
 
* Continued outstanding growth in Online Sportsbook turnover, up 39 percent with mobile up 78 percent.
 
* Strong Online gaming net revenue growth, up 16 percent, benefiting from 142 percent growth in mobile.
 
* Largely completed roll-out of Eclipse gaming machines into half the Retail estate
 
* Improving Australia KPIs with unique actives up 22 percent; new accounts up 8 percent and cost per acquisition  down 11 percent.
 
* Strong US performance with wagering up 23 percent and operating profit up 188 percent.
 
* Mobile Sportsbook and Casino launched in Italy
 
* On the Retail side, Management says that new UK government taxes on FOBT income will cost it around GBP 22 million and result in the closure of 109 betting shops this year, with the possible loss of some 420 jobs.
 
Ralph Topping, Chief Executive, reported:
 
"Our focus on combining a broad and deep product range with outstanding user experiences and scale investment in marketing continues to deliver tangible benefits across the Group: Sportsbook betting continues to grow rapidly, mobile gaming is much improved and we're seeing positive trends in the key performance indicators for Australia and the US.
 
"Whilst the outstanding gross win margin in Q1 2013 sets a very high bar, meaning we are facing tough comparative figures, two substantial loss making weeks in this quarter (weeks 2 and 12) - with major wins for the football punters - impacted profit progression despite good growth in wagering in both Online and Retail and significantly improved gaming performance in both channels.
 
"As ever, it is important to look through short-term sporting results to the underlying strength of the business.  Mobile, for instance, continues to go from strength to strength, increasing to 45 percent of Online Sportsbook amounts wagered and 27 percent of Online gaming net revenue in the period.
 
"We are also progressing successful diversification of the business both online and internationally, including delivering further good growth in Italy, Spain and the US. With most of the major components of the digital Australian platform now in place, we will be driving further improvements in that business's performance as well.
 
 "As regards UK Retail, we have now successfully implemented the ABB's voluntary Code for Responsible Gambling and are pleased with the progress to date. However, as a direct result of the UK government's unexpected announcement on an increase in Machine Games Duty to 25 percent, we have reviewed shop profitability and will be closing a portfolio of 109 shops this year, putting c420 shop employees at risk of redundancy.  This is particularly disappointing as, through the economic downturn, we have worked hard to grow our Retail base but this further planned increase in indirect taxation makes this action necessary.
 
"Looking ahead to the rest of 2014, it is positive to note Online had recouped much of its shortfall against internal expectations following week 2 before we were hit again in week 12. While there is no guarantee we can make up the difference, we continue to believe the increased customer confidence from such wins should be good for business, especially in this World Cup year. We are very well placed to take advantage of the World Cup opportunity, coming in the second quarter, with an unrivalled football product range, the most downloaded Sportsbook app in the UK and a leading mobile gaming offer for cross-sell."



Gambling News :

Live Dealer Now At Slotocash - Live Dealer can be found in the left navigation menu under 'Live Dealer' when you, the player is logged in to instant play.

Advantages of online slots over slot machines - The rise of online casinos means that players no longer have to leave their own house to play casino games.

Betradar Launches US Sports Betting Solutions - With only a few weeks to go until the betting and gambling world descends on ICE in London, Betradar have today announced that they will be launching a comprehensive range of tools and services to any company that will be looking to provide sports betting in a post-PASPA United States.

Abdelaouhab Zizi Wins MPNPT Morocco Main Event - Abdelaouhab Zizi has defeated fellow Casablanca resident Fadhil Farag heads up to win the 2018 MPN Poker Tour Morocco Main Event and MAD 375,000 (c. €33,220) after a two-way deal.

Final 12 For MPNPT Morocco - Sunday on the MPN Poker Tour Morocco will see several trophies awarded at the Mazagan Beach Resort, with the largest going to the Main Event champion along with a prize of MAD 400,000 (c.€35,400).

MPNPT Morocco Updates - Leading the 104 combined survivors from both flights is still Said El-Yousfi with 272,000 chips; visit the MPN Poker Tour blog for an end-of-day recap and full chip counts.

MPN Poker Tour Morocco Day 1A - The MPN Poker Tour has returned to Morocco this week (January 11-14), featuring the MAD 1.5 million guaranteed Main Event, accompanying side events, and the activities and parties for which this tour has now become known on two continents.

2018 MPN Poker Classic - The MPN announces the return of The Classic tournament series this January. The series is back following its successful €350,000 guaranteed debut in 2017. This time €500,000 is guaranteed, along with a once in a lifetime trip to Monaco for the Classic Champion.

PDC and Sportradar Renew Deal - Following this month’s hugely successful World Championship, the Professional Darts Corporation (PDC) and long-standing partners Sportradar have renewed their multi-faceted cooperation that will see the leader in sports data and content continuing in their role as official data

Poker Yaar Joins MPN - Available through download, instant play and mobile, Pokeryaar.com is live with Omaha, Hold’em and Five-Card poker variants, alongside MPN’s Fish Party, the industry’s only progressive jackpot SNGs.

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