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William Hlll Q1-2016 Trading Update

WILLIAM HILL ONLINE STUMBLES IN FIRST QUARTER RESULTS

Impacted by adverse results, self exclusion and time-outs.

Following a forecast warning at the end of March, William Hill has delivered a trading update for the 17 weeks to April 26, 2016 that reveals a disappointing online performance.

Despite trading in line with previous full-year operating profit guidance of GBP 260 - GBP 280 million, the group posted a 3 percent decline in group net revenue.

Online net revenues, gaming and sportsbook declined 11 percent, 4 percent and 17 percent respectively. The company said adverse sporting results, time-outs and self-exclusions had had a negative effect on trading.

Regionally, amounts wagered declined 2 percent in the UK market and gaming net revenue showed a decline of 5 percent partially offset by growth in the Vegas product suite, however, Italy and Spain continued to grow at a double-digit rate.

Retail performed well despite a lower turnover and adverse Cheltenham results, yielding a gross win margin in line with expectations and .6 percent ahead of the prior year.

Trading in Australia was reported as encouraging. Overall amounts wagered increased 10 percent but a lower gross win margin reflected weaker year-on-year horseracing results.

Wagering within the William Hill brand was up 22 percent, reflecting the refocusing of the business on the core digital customer base and the William Hill brand. Active customers were up by 1 percent, new accounts increased 46 percent.

William Hill US continued to perform strongly.  In local currency terms, amounts wagered were up 31 percent and net revenue was up 38 percent with gross win margins higher year-on-year.

“It has been a tough start to the year in Online, which is being impacted by both regulatory change and a gross win margin below normalised levels for the period due to a disappointing Cheltenham festival and unfavourable European football results,” James Henderson, chief executive officer of William Hill said.

“Trends in recent weeks remain in line with the guidance we gave in March.”

In related news, William Hill confirmed the appointment of Crispin Nieboer as managing director of online having held the position since January on an interim basis.

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Gambling News :

Pokerstars Now Lead Sponsor of Global Poker League - Alex Dreyfuss Global Poker League has received a significant boost from the announcement by Dreyfuss Mediarex Sports and Entertainment company Friday that online pokers biggest operator, Pokerstars, has signed on as lead and exclusive GPL sponsor.

Betconstruch invests in Ucrafts - BetConstruct may have also been attracted by the obvious interest in Ucrafts business - the start-up has already gained 5,000 subscribers in just a few months of commercial activity.

Plus500 Founders Selling Off Shares - Alon Gonen and Gal Haber respectively sold 7.2 million shares, retaining a 10.4 percent interest in the company; and 2.6 million shares, retaining a smaller stake of just 3.6 percent.

Rush Golf Live Launches - Virtual sports provider Inspired Gaming has announced the launch of its latest product - Rush Golf Live - with Betfred the first operator to carry the game.

British Basketball League in Deal With Perform - The British Basketball League has agreed a six-year deal with Perform, a digital sports content and media group, for the distribution and sale of all global media-related rights.

Ashley Sandyford Sykes Sharing Slot Expertise - Sandyford-Sykes has experience in the development of over a hundred popular online slot titles and led the Quickfire development team at Microgaming.

2016 WPT National Marrakech High Roller Results - Spanish poker pro Nabil Cordoso boosted his career earnings by a useful $66,873 this week when he was awarded the first prize in the PMU.fr WPT National Marrakech High Roller event in Marrakech.

GreenTube and Chopsticks In Partnership - Novomatic Interactive subsidiary Greentube has announced that it has signed a partnership deal with the Gibraltar-based mobile app developer Chopsticks In The Apps Ltd through which it will organize distribution of Chopsticks games through its online, mobile, social and land-based channels.

DraftKings Investigating Collusion Complaint - The stigma of cheating has surfaced again in the daily fantasy sports sector following allegations that two players colluded in a million dollar contest at DraftKings.

Singapore Gambling Exemptions Granted - The issue of certain state-linked commercial organisations being granted exemptions from Singapores tough anti-online gambling laws has been on the table for the past few months and has been the subject of opposition complaints; protest petitions and general argument.

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