Significant strategic progress:
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William Hill Australia established with £459m acquisition of Sportingbet's Australian business, completed on 19 March 2013 |
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Gained full control of rapidly growing Online business through £424m acquisition of 29% outstanding stake, completed on 15 April 2013 |
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Balance sheet transformation with £373m rights issue completed on 5 April 2013 and £375m corporate bond issued on 5 June 2013 |
Continued momentum:
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Group net revenue up 20% and Operating profit up 8% |
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Outstanding growth in Online Sportsbook net revenue +44%, driving overall online net revenue growth, up 18% and Operating profit growth, up 16% |
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Continued strong growth in mobile with mobile Sportsbook amounts wagered up 112% and mobile gaming net revenue up 198% |
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Strong over-the-counter (OTC) gross win margin growth drives growth in Retail net revenue. Operating profit down only £2.2m after additional c£5m taxation charge following change to Machines Games Duty in February |
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Basic adjusted earnings per share +16% and dividend +16% |
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Net debt for covenant purposes increased to £821m (2 January 2013: £339m) with impact of acquisitions offset by £373m (net) rights issue |
Ralph Topping, Chief Executive of William Hill, commented:
"I am pleased with the extent of the strategic progress we have made in the last six months. Australia is a very attractive proposition and, since we assumed ownership, we are excited by the opportunity we see to develop William Hill Australia by improving our digital offer and targeting the recreational customer. Taking control of Online is giving us more freedom both to invest and to use that expertise across the Group, including in Australia, where we have a team from Online helping to develop the proposition to compete more effectively. That work is ongoing and will be completed in early 2014.
"At the same time, we have continued the momentum in Online, particularly in mobile Sportsbook. The shift to mobile gaming is an important development and we have invested significant resources in getting the business fully prepared to accelerate this important opportunity. With almost 200% growth in mobile gaming net revenue in the first half, this decision is clearly justified.
"While online and mobile gambling have grown substantially, Retail has continued to prove resilient, with net revenue growing, driven by both betting and gaming. Profits have held up well even without a major football tournament and with the business being hit by additional tax. As the UK economy improves and consumers generally feel more confident, we remain confident Retail will continue to prosper.
"Looking forward, we are continuing to innovate and to invest, developing mobile gaming, rolling out the next generation gaming machine in the shops and with a clear plan for maximising the value of our acquisitions for the long-term benefit of the business."
