William Hill has posted a solid start in CEO Ulrik Bengtsson’s first financial report since taking the helm, as the firm also bolsters its US profile via the purchase of CG Technology sportsbook assets.
Revenue for the 17-week period up to October 29, 2019, grew one per cent with online revenue increasing 26 per cent, as gaming and sportsbook rose 51 per cent and one per cent respectively. Adjusting for the performance of Mr Green, William Hill pro-forma online net revenues reported a one per cent increase.
Online UK is also said to have grown for the second quarter in a row and compromises two thirds of the division, while on an international pro forma basis a decrease of four per cent was felt.
It is stressed that the integration of Mr Green is well underway and the transaction has performed in line with expectations, however, a number of regulatory headwinds experienced disruption to payment methods.
Recording a like-for-like 16 per cent decline in retail revenues, William Hill maintains that the division’s performance is in-line with expectations, with the period also seeing the closure of 700 shops as the firm vows to ‘do it once and do it right’.
William Hill US continues to deepen its footprint across the country as it reported strong growth and a net revenue increase of 60 per cent, with launches in Indiana and Iowa seeing its portfolio stretch to ten states with a market share of 26 per cent.
Bengtsson commented: “During my first months as CEO I have been focused on how we can improve our competitiveness whilst ensuring we continue to deliver on our strategic ambitions, and I am pleased to confirm we remain on track to meet our full year expectations.
“We have simplified our structure around our geographical markets, appointed a chief technology and product officer and introduced a new role of chief operating officer to enable improved customer alignment, execution and drive operational efficiency.
“In the US our business has gone from strength to strength. We have excellent market access, a valuable partnership with Eldorado and we are excited about the potential that is presented by the combination with Caesars. We have remodelled the UK retail estate, while the UK online business has benefited from a series of customer facing improvements evidenced in the stabilising market share in the last two quarters.
“In addition, we expect our international online business to benefit from a number of important product improvements that will be delivered over the coming quarters. We undoubtedly have great people and a shared vision at William Hill. Our job now is to push on and do even better in terms of customer focus and execution.”
William Hill has also documented the purchase of CG Technology assets, including operations in Nevada and the Bahamas as well as leases at The Cosmopolitan of Las Vegas, The Venetian and The Palazzo, The Palms, the Tropicana and Silverton, as well as providing a betting platform and risk management consulting to the Atlantis on Paradise Island.
“We are pleased to have reached this agreement. This will allow us to expand our Las Vegas footprint to several marquee resorts,” said Joe Asher, CEO of William Hill US. “We look forward to working with our new casino partners and transitioning CG Technology’s retail and mobile customers to our award-winning offering.”