Key financial and operational highlights
Group net revenue grows despite rolling over 2014 World Cup
Group operating profit down c£21m impacted by additional £44m in gambling duties from Point of Consumption Tax (POCT) and increase in Machine Games Duty (MGD) rate
Continued success in transitioning through UK POCT disruption: 16% growth in Online's UK net revenue and key football TV contracts secured for 2015/16 season and Euro 2016
Retail profit progression impacted by MGD rate increase and onset of £50 journey for gaming machines but benefiting from effective operating cost control
In Australia, rebranding of Sportingbet to William Hill is generating positive momentum whilst margin management progresses
William Hill US continues to deliver strong wagering and profit growth
Interim dividend of 4.1p per share, up 2.5%, reflecting the Board's continued confidence in the outlook for the Group
James Henderson, Chief Executive Officer of William Hill, commented:
"We have delivered a good operational performance in the past six months during a period of significant regulatory and taxation change for the industry. Whilst factors such as the Point of Consumption Tax and the increase in the Machine Games Duty rate have impacted our cost base as expected, we continue to progress our strategy and invest in our long-term growth drivers.
"We are making excellent progress across our three strategic priorities, particularly in technology where Project Trafalgar will give us the ability to bring our customers a faster and more stable online service, a much improved mobile experience and an enhanced in-play product range on mobile devices.
"Meanwhile, innovations such as our industry's first Accelerator programme will allow us to further our strategy to bring customers a differentiated and personalised service.
"I am particularly pleased with our move into the emerging online lotteries market, which will support our international diversification and gives us exposure to an exciting growth market in a gambling vertical which is new to us.
"We remain committed to working with the industry and the regulator to promote responsible gambling and ensure that the marketing of gambling is socially responsible.
"Looking ahead, the Board is confident that the Group remains well positioned to gain share in key markets, notwithstanding the impact of increased taxes and regulation. In UK Retail, we anticipate some further impact from the £50 journey during the second half. We are making good operational progress in building a leading business in Australia, repositioning William Hill Australia in the key recreational segment in that market."
