The £2 FOBT maximum stake limit is continuing to work against William Hill’s transitional period along with increased US investment. During first half of 2019, the betting company has hit the $1 billion wagered mark and experienced a 27% market share across seven states.
The performance during this time, however, was still in line with expectations. According to company officials, financials for the full year should also be in line with estimates and forecasts.
US Business Still Going Strong
First half adjusted operating profit took a 33% tumble to £76.2 million, having been at £113.6m last year…
…and the key contributor to this was start-up costs increase in relation to a multitude of business moves in various parts of America. William Hill is present in US states at the current moment and the business there is lauded by a board of directors. Two more states will soon become home to its products and services.
The report also addressed some concerns regarding the ongoing merger of Caesars Entertainment and Eldorado Resorts.
The said merger could provide a major developing opportunity for Hill, who could gain access to an additional 34 casinos that could potentially generate $20m to $35m in additional retail EBITDA in three years as well as access to states such as New York .
A Good Progress
It was William Hill’s CEO, Philip Bowcock, who said:
“We are making good progress against the five-year strategy we outlined last year, delivering strong revenue growth in the US and other international markets and positioning William Hill well for future growth.
We continue to expand rapidly in the US, both in Nevada and in the new states, with over $1bn wagered with us in the first half. We are now live in eight states and will expand into at least two more states in H2.”
International Revenue Grows
The company’s revenue in regards to international business has grown 66% which is a direct result of the Mr Green acquisition.
“Online International revenues have grown strongly, up 66 per cent, with the acquisition of Mr Green. We are becoming more diversified with non-UK markets now contributing a third of online’s revenues, up from just 24 per cent last year. In the UK, performance has improved through the half, up seven per cent in Q2, as we manage the tax and regulatory impacts.”
Launch in Iowa and Formation of RG Committee
In mid-July, it was revealed that two Eldorado Resorts venues will get mobile and land-based sports betting technology provided by Hill.
This is a continuation of the pair’s ongoing partnership which was extended for another 25 years in September last year. “We are thrilled to build on our already extensive relationship with Eldorado Resorts as the sports betting industry continues to gain momentum,” said Hill US president, David Grolman.
Led by Conservative Lord Chadlington, the UK’s newly-established committee for responsible gambling is formed by the UK’s five biggest gambling operators: bet365, Flutter Entertainment, GVC, Sky Betting and Gaming and Hill.
In Chadlington’s own words, “the committee will consult widely to formulate its recommendations taking account in particular of the views of government, regulators, the third sector, gambling operators and those with lived experience.”
“Transitional William Hill ‘delivering on our new strategy’”, casinobeats.com, August 9, 2019.