William Hill Report Up In Online But Down In Retail

William Hill announced their full annual results showing that the company suffered a decline in revenues of 16% for the year to £1.32 billion. The good news is that the company that is soon to be owned by Caesars Entertainment in a deal worth £2.9 billion had a better 4^th quarter with revenues up 9%.

Chief Executive Officer Ulrik Bengtsson said:  “2020 was a year like no other… The offer received for the Group recognises the substantial progress we have made as well as the opportunities and challenges ahead of us.”

The UK betting company whose deal with Caesars is expected to be completed in the second-quarter of this year had an up and down year with sporting events that would have helped William Hill’s results not taking place because of the global Pandemic, however the last quarter saw results turn in the companies favour.

Below are the companies highlights on results:

Online International net revenue increased 12% on a pro-forma2 basis in 2020, benefitting from the successful integration of Mr Green, which launched in two new regions. Delivery of product improvements and effective implementation of a multi-brand strategy offset regulatory headwinds and the absence of live sport during part of the year, with gaming growing 18% pro-forma.

Online UK net revenue grew 5% in 2020. The steady stream of platform and product upgrades improved our competitive position and the year concluded strongly, driven by a full calendar of live sport in the last quarter and with gaming net revenue growing 20% in that quarter.

US full year net revenue increased 32%, driven by strong growth online. Casinos remained closed or operated with restricted access for long periods and the major US sports leagues rescheduled their seasons in response to the pandemic. As part of our existing joint venture agreement, we absorbed the Caesars In-Person sportsbooks onto the William Hill platform. William Hill US went live in five new states and launched mobile in five states, leading to 121% net revenue growth in the fourth quarter. William Hill’s sports betting apps and sports book odds are now featured on both ESPN and CBS Sports, two of America’s leading sports media brands, as a result of agreements entered into during the year.

Retail responded to the disrupted trading environment with great agility. Net revenue decreased 30% on a like-for-like basis, driven by a series of national and regional lockdowns, implemented in response to the pandemic at the end of the first quarter and affecting the remainder of the year.

When open, with no restrictions, Retail traded well and profitably. At the end of the third quarter Retail was on course for a breakeven outcome for the full year. However, the Covid-19 related restrictions experienced during the fourth quarter impacted all our 1,414 shops at some point, resulting in a full year loss of c.£30m. We received £24.5m of furlough funds in the first half which have since been repaid and, under the current circumstances, we do not expect to claim any further job retention related support. Throughout the year, even when furloughed, our UK retail colleagues received 100% of their full pay.