William Hill has experienced a 2% increase in revenues boosted by online and US businesses.
UK.- William Hill has reported its latest financial results, which indicate that revenue increased 2% in the first four months of 2019. This improvement was driven by the performances of online and US businesses.
The UK-based company said that online revenue for the 17 weeks through April increased 8%. Furthermore, revenue from the US jumped 48% and offset a 7% decline on the high street. Online gambling’s growth was reflected by the acquisition of Swedish Mr. Green since it was acquired in January 2019. However, that growth was offset by enhanced customer due diligence measures and a strong margin in the comparator period.
William Hill reported a 15% decline in gaming revenue from retail business. This particular segment was affected by the recent reduction on the maximum stake on fixed odds betting terminals (FOBTs). William Hill had already predicted that the measure would significantly affect the company’s numbers. “The impact of the introduction of the £2 stake limit has been in line with our expectations. We’re confident in our plan to manage this major change. [We] will update more fully at the half year,” said CEO Philip Bowcock.
“Online continues to show good momentum as we focus on growing our mass market customer base. Retail has begun to adapt to the new £2 machine gaming stake limit,” Bowcock said.
“Just one year on since PASPA was overturned William Hill has doubled the sports wagering it handles in the US, seen record performances at the Super Bowl and March Madness, is live in all seven states to have allowed sports betting and expects to enter further states soon, with Indiana and Iowa the most recent states to pass bills to legalise sports betting.
“As anticipated enhanced customer due diligence measures impacted revenues in our online business in the period, while gross win margins returned to more normal levels.”