William Hill PLC Online business continued to deliver double-digit growth

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William Hill PLC (LON:WMH) announced its half-year results for the 26 weeks ended 26 June 2018 (the period or H1 2018). Comparatives relate to the 26 weeks ended 27 June 2017.

	Statutory results			Adjusted results
	H1 18 £m	H1 17 £m	Change %	H1 18 £m	H1 17 £m	Change %
Net revenue	802.6	778.5	+3%	802.6	778.5	+3%
Existing operations adjusted operating profit¹	–	–	–	130.8	128.9	+1%
US Expansion operations²	–	–	–	(17.2)	–	–
Adjusted operating profit³	–	–	–	113.6	128.9	-12%
Discontinued operations – Australia⁴	–	–	–	3.8	0.6	–
(Loss)/profit before interest and tax	(802.3)	108.6	–	–	–	–
(Loss)/profit before tax	(819.6)	93.1	–	96.3	110.6	-13%
(Loss)/earnings per share (p)⁵	(93.5)	9.4	–	9.1	11.1	-18%
Dividend per share (p)	4.26	4.26	0%	4.26	4.26	0%

Financial results

· Group net revenue up 3% to £802.6m

· Adjusted operating profit from existing operations1 up 1% to £130.8m

· Exceptional charge and adjustments of £915.9m including £882.8m non-cash impairment to Retail following Triennial Review decision leading to a statutory loss before tax of £819.6m

· Proceeds of £241.7m received from disposal of Australian business and investments in NYX

· Balance sheet remains strong and flexible with net debt for covenant purposes6 of £272.4m, 0.8x EBITDA

· Interim dividend in line with prior year at 4.26p per share

Operating highlights

· Good FIFA World Cup performance with >1 million Online actives across the tournament

· Total Online net revenue growth of 11%

· Online Sportsbook performed well with net revenues +18% and new accounts +16%

· Online gaming net revenue growth +4% with continuing improvements in cross-sell

· Retail net revenue down 3% in a challenging environment for the UK high street, with horseracing fixture cancellations in Q1

· Continued strong growth in existing US business: net revenue up 50% and adjusted operating profit3 up 132%

· Responding rapidly to new US opportunities:

· First bet in New Jersey accepted at William Hill’s Monmouth Park sports book in June, new sports book launched at Ocean Casino in Atlantic City and readying for mobile launch this month

· Expanded offering in Delaware, as risk manager for the state lottery

· Deals signed with 11 casinos in Mississippi and one casino in West Virginia to run sports books and plans to take the first sports bet in Mississippi in August

· New sustainability strategy established with long-term ambition that nobody is harmed by gambling

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

“William Hill has performed well during the first half of 2018 and, following major regulatory decisions in the UK and US, we now have greater clarity over the challenges and opportunities that lie before us.

“During the first half, our Online business continued to deliver double-digit growth. In Retail, we are beginning to put in place plans to mitigate the impact of the Triennial Review. In the US, we have moved quickly following the repeal of PASPA as we grow into newly regulating states. We will continue to invest in the US to ensure we are well placed to capture the substantial potential available to us.

“Fundamental to delivering over the long term will be our sustainability strategy, which marks a significant cultural change for the company. Gambling-related harm is a serious issue and it is important that we face up to this challenge. We have set ourselves the ambition that nobody is harmed by gambling and set out a detailed programme of actions as we start out on this journey.”