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Q3-2014 Reports From William Hill

Tuesday October 21,2014 :  STRONG Q3-2014 PERFORMANCE FROM WILLIAM HILL P.L.C.
KPI's all moving in the right direction.
Online and land gambling group William Hill plc has turned in another sparkling performance - particularly from its online enterprises - in an interim management report covering the period from 2 July 2014 to 20 October 2014.
The report shows that the third quarter saw strong year-on-year margin swing driving outstanding profit growth, with key performance indicators highlighting:
* Group net revenue up 23 percent and operating profit up 89 percent;
* Online operating profit up 126 percent, with wagering up 18 percent and mobile wagering up 38 percent;
* Online Gaming net revenue up 23 percent, with 116 percent growth in mobile gaming; and now contributes  31 percent of Online gaming net revenue;
* Online gaming net revenue (comprising 87 percent Casino, 8 percent Bingo, 5 percent Poker) continued to grow strongly, benefiting from investment in mobile gaming together with a wider differentiated product range.
* Retail operating profit up 31 percent, driven by strong gross win margin and ongoing machine strength;
* Eclipse gaming machine roll-out into second half of Retail estate now underway;
* Continued improvement in the Australian subsidiaries, with improved margin and operating efficiencies increasing operating profit substantially;
* Good US wagering growth up 21 pecent, with mobile growth up 88 percent;
* Involvement as a founder member in the responsible gaming adocacy organisation Senet Group;
CEO James Henderson said Tuesday:
“The Group performed strongly in Q3 driven by both favourable sporting results and the continued development of our UK and international businesses. The period saw good gaming growth in both major channels and sports net revenue growth significantly boosted by a favourable year-on-year swing in win margin.
"Positive sporting results in the quarter, including a strong end to the World Cup, have moved us close to or ahead of normalised gross win margins on a year-to-date basis.
“Online gaming continues to benefit from our investment in mobile and Sportsbook turnover growth remains healthy, with in-play turnover growth a particular feature, up 35 percent in Q3.
"In Retail, net revenue growth of 9 percent reflects a favourable sports margin, the benefit of the World Cup and a strengthening of machine gross win growth rates, despite the impact of 82 shop closures during the quarter.
“Our international businesses are performing well. The progress made to date in William Hill Australia is delivering strong profit growth. Our work to optimise the customer base, following the onset of increased race field fees, has improved the gross win margin, with slightly reduced amounts wagered, as expected.
“In Italy, we became number one in online sports betting in July with a 14 percent market share and in Spain we have further increased our online sports betting market share to 20 percent. William Hill US has continued to show growth in both wagering and profits.
"We continue to monitor closely potential developments in land-based sports betting in New Jersey.
Management expects operating profit for 2014 to be towards the top end of current consensus range assuming normalised results in the final quarter.

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