William Hill optimistic about full year after profits surge in Q3
High street bookie William Hill said that profits should come in at the top-end of analysts' forecasts this year after a strong third quarter, which was boosted by "favourable sporting results" and good growth overseas.
William Hill
271.80p
09:58 22/04/21
Operating profit in the three months to 30 September was 89% ahead of a weak comparative last year.
Operating profit from the online division, which accounts for a third of group revenues, was up 126% year-on-year as sportsbook amounts wagered increased 18% - helped by two weeks of World Cup betting - and strong growth was registered in gaming (casino, bingo and poker).
Gross win margins online were 310 basis points (bp) better than the previous year.
Retail operations, which account for 57% of group revenues, saw a 31% improvement in operating profits. The group said that a 1% fall in the amounts wagered over-to-counter was more than offset in revenue terms by the benefit of positive football results.
Retail gross win margins were up 200bp on last year.
Elsewhere, the company said the William Hill Australia was seeing positive signs of improvement with user numbers increasing 18% and the gross win margin up 160bp. William Hill US also performed well with the amounts wagered up 21% and the gross win margin 220bp higher. Both the Australia and US divisions recorded a profit in the third quarter, compared with losses the year before.
"Following this strong results-driven quarterly performance, the group now expects operating profit for 2014 to be towards the top-end of current consensus range assuming normalised results in the final quarter," the company said.
The stock was up 1.8% at 370.1p by 08:25 on Tuesday.