2017 Half-year results

William Hill momentum continues with wagering growth across all four divisions

William Hill PLC (LSE: WMH) (William Hill or the Group) announces its half-year results for the 26 weeks ended 27 June 2017 (the period or H1 2017). Comparatives relate to the 26 weeks ended 28 June 2016 (H1 2016).

Good progress against three strategic priorities

• UK market share gains: Online and Retail growing at or above market growth rates
  • Online: UK Sportsbook amounts wagered +13% and UK gaming net revenue +9%
  • Retail: amounts wagered +2% and gaming net revenue +3%
• International revenue growth: continued net revenue growth in Australia and US
• Transformation and technology: on track to deliver £40m of annualised efficiency savings by year-end and, over the long term, improved revenues, greater cost efficiency and better organisational effectiveness

Financial results

• Group net revenue up 3% to £837.0m
• Adjusted operating profit¹ of £129.5m, down 1%
• Adjusted EPS² of 11.2p, up 7%
• Strong cash generation with operating cash flow of £115.3m
• Balance sheet remains healthy with net debt for covenant purposes³ of £604.6m, 1.7x EBITDA
• Interim dividend increased 4% to 4.26p per share, reflecting the Group’s continued strong cash flow and the Board’s confidence in delivery of strategic priorities

Philip Bowcock, Chief Executive Officer of William Hill, commented:

"The first half of 2017 has seen good progress against our three strategic priorities and wagering growth across all four divisions. Our product improvements combined with improved marketing have seen both existing customers respond positively and the number of new customers start growing again during the period. As a result we are seeing good momentum building in Online’s performance. In Retail we made market share gains, with growth in both sports betting, despite the lack of a major international football tournament, and gaming revenues. Internationally, our US business continues to perform well and in Australia, with the upcoming Spring Carnival key to the full-year results, we are competing hard and diversifying our product range.

"Earlier in the year we targeted £40m of annualised savings as part of our transformation programme and we are on track to deliver this by the year-end. In addition to these savings, the programme has sparked initiatives to further improve our products and customer experience, accelerate our top-line growth and increase efficiency. We are confident about delivering a good outturn in 2017 and beyond."

Notes

1. Adjusted operating profit is defined as profit before interest and tax, excluding exceptional items and other defined adjustments. Further detail on adjusted measures is provided in note 3 to the half-year results.
2. Basic EPS is based on an average of 856.8 million shares for H1 2017 and an average of 877.2 million shares for H1 2016. Adjusted EPS is based upon adjusted profits after tax.
3. Net debt for covenant purposes and EBITDA for covenant purposes are non-statutory measures. The basis of calculation is as described in note 23 to the financial statements within our 2016 Annual Report.
4. Definitions are provided in the glossary at the back of the document.
5. Numbers are presented on an adjusted basis unless otherwise stated.

Enquiries

Analyst and investor presentation

Debt investor conference call

Notes to editors

William Hill, The Home of Betting, is one of the world's leading betting and gaming companies, employing around 16,000 people. Founded in 1934, it is the one of the UK's largest bookmakers with around 2,375 licensed betting offices that provide betting opportunities on a wide range of sporting and non-sporting events, gaming on machines and numbers-based products including lotteries. The Group's Online business (www.williamhill.com) is one of the world's leading online betting and gaming businesses, providing customers with the opportunity to access William Hill's products online, through their smartphone or tablet, by telephone and by text services. William Hill US was established in June 2012 and provides land-based and mobile sports betting services in Nevada, and is the exclusive risk manager for the State of Delaware's sports lottery. William Hill Australia is one of the largest online betting businesses in Australia after the Group acquired Sportingbet and tomwaterhouse.com in 2013. It offers sports betting products online, by telephone and via mobile devices. William Hill PLC is listed on the London Stock Exchange. The Group generates revenues of c£1.6bn a year.

Cautionary note regarding forward-looking statements

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

These results include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout these results and the information incorporated by reference into these results and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond William Hill's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in these results and/or the information incorporated by reference into these results. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates, are consistent with the forward-looking statements contained in these results and/or the information incorporated by reference into these results, those results or developments may not be indicative of results or developments in subsequent periods.
Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), William Hill does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. 

Download full 2017 Half-year results statement in PDF format

William Hill PLC, Press team

Tel +44 (0)20 8918 3732

Email pressteam@williamhill.co.uk