William Hill Posts 16% Operating Profit Decline in H1 2016 Report

The UK-based bookmaker William Hill published an official report of its financial results for the first half of 2016. The report includes data about the gambling operator’s performance on the market over the 26 weeks ended 28 June 2016.

The Interim Chief Executive Officer of William Hill Philip Bowcock said that the company will remain focused on delivering on their plans to diversify their product offering and online and international expansion policy. He also revealed that the UK-based bookmaker is to be aimed at several main issues over the second half of the fiscal year, including accelerating technology improvements for further international growth, to recover its web-based business as well as take advantage of increased efficiencies.

William Hill announced that three of its core divisions had a pretty satisfactory performance over the first half of the year. It was a good thing that the UEFA Euro 2016 results helped the bookmaker offset the negative effects of the Chelthenham Festival. The latter has been the worst one William Hill has seen for years as the bookmaker itself revealed in its first quarter trading update.

The UK-based bookmaker managed to generate gross win estimated to £36 million thanks to the strong results it got over the Euro 2016 that took place from June 10th to July 10th this year.

The company announced that there was a 1% increase year-on-year in its net revenue from £808.1 million in the first six months of 2015 to £814.4 million in the first half of 2016. However, the operating profit of William Hill suffered a 16% decline from £155.7 million to £131.1 million. On the other hand, the profit before tax increased by 28% and reached £100.7 million.

Several months earlier – in March 2016, the bookmaking operator issued a profit warning to note that the Cheltenham Festival results and online gambling customers withdrawal because of newly-implemented regulatory requirements would probably have quite a negative impact on the company’s full-year profit. According to the preliminary expectations of its annual operating profit, figures would be in the range from £260 to £280 million. Then, in the half-year report, the company revealed that trading has remained in line with the expectations announced earlier this year.

As for the Retail division of William Hill, a 4% increase in its net revenue was marked over the first six months of the year. Over the period, a total of 800 proprietary self-service betting terminals across the company’s betting outlets were added.

The Australian division of the bookie has posted a 12% turnover increase. Unfortunately for William Hill, the company’s margins were hurt by unfavourable racing results. The operating profit of the bookmaker’s US division also delivered an increase of 49%.

According to the company’s report, over the first half of 2016, William Hill continued its investment strategy which has been focused primarily on its online business. The sportsbook mobile experience has been successfully redesigned by the operator right before the UEFA Euro 2016, which had a positive impact on the overall performance of the company.

  • Author
Olivia Cole

Olivia Cole

Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.
Daniel Williams
Casino Guardian covers the latest news and events in the casino industry. Here you can also find extensive guides for roulette, slots, blackjack, video poker, and all live casino games as well as reviews of the most trusted UK online casinos and their mobile casino apps.

Related news