Trading statement
19 January 2012
William Hill PLC (LSE: WMH) (William Hill or the Group) announces a trading update for the 13 weeks from 28 September to 27 December 2011 (fourth quarter) and the unaudited 52 weeks to 27 December 2011 (full year). The Group has also announced today that it has awarded a contract to Inspired Gaming Group for sole supply of gaming machines to William Hill's licensed betting offices (see separate announcement).
Fourth quarter
Retail performance in the last quarter of 2011 saw 11% growth in year-on-year over-the-counter (OTC) amounts wagered whilst machines gross win growth also continued strongly in the quarter, up 7% year-on-year (gross win per machine per week: £924). This strong performance helped to offset a weaker OTC gross win margin of 17.0%, which was two percentage points below the comparator (2010: 19.0%). Poor football results, particularly on low stake multiple selection bets, proved to be a drag on margin, especially in November, and horseracing margin was below its normal range.
Online net revenues grew strongly in the quarter, with year-on-year Sportsbook amounts wagered growth in line with the trends seen in previous quarters and a gross win margin in line with the previous year's fourth quarter. Sportsbook, Casino and Bingo all showed year-on-year net revenue growth, with Poker declining in the quarter.
Full year
The Group's performance in 2011 is in line with market expectations, with net revenue expected to be up 6% and Operating profit(1) expected to be around £274m, compared to £276.8m in the prior year, which benefitted from a lower effective machines taxation rate and an exceptionally high margin World Cup.
