Reporting on its 2014 full year results, William Hill was able to declare a record operating profit of £372 million up 11% on FY 2013 £335 million. William Hill governance stated that its strong 2014 performance had driven by its continued product diversification, which had seen 40% of revenues generated from its digital channels.
Key 2014 sporting events such as the FIFA World Cup helped the operator increase its revenues to 1.6 billion (2013: 1.48 billion). William Hill supported its increase in player activity through strong engagement through its mobile vertical which increased channel wagering by 55%.
The operator was to report gains on all of its digital channels, as online sports betting turnover was up 28% and online gambling (casino, poker, bingo) net revenue was up 17%, as William Hill saw a 117% growth in its Mobile Vegas platform.
William Hill’s strong digital performance countered 2014 retail net revenues which were flat and operating profit down 2%, with the impact of less favourable sports results partly mitigated through effective cost control
Of particular delight to William Hill governance will be the operators improved performance in international markets. William Hill reported strong growth in net revenue in Italy and Spain, up 39% and 64%, respectively.
Ahead of its 2015 Australia brand launch, the operator saw net revenue4 growth of 11% and operating profit1,4 growth of 121% after restructuring its Australian business division
James Henderson, Chief Executive Officer of William Hill, commented:
“2014 was a record year for William Hill, with good operating profit growth benefiting from the continued digital and international diversification of our revenue streams, and from a record-breaking World Cup performance. I am particularly pleased with the progress in our three strategic areas of focus: differentiation through technology; continued internationalisation; and maximising the omni-channel opportunity of Retail and Online.
“Online has delivered 21% compound annual net revenue growth since 2009 and is competitively at the leading edge in this market. Internationally, we have reshaped our Australian business and are moving it to the William Hill brand, enhancing its competitiveness in this attractive market. Our US operations continue to progress strongly and we are well positioned in the event of regulatory change. Retail remains resilient and, with the largest number of betting shops in the UK and as the leading UK digital operator, we are moving closer to a ‘one customer’ proposition to deliver a seamless experience for our customers across our channels.
2014 William Hill Performance Overview