William Hill PLC (LSE: WMH) (William Hill or the Group) announces its Interim Management Statement for the 13 weeks ended 25 September 2012 (the period or Q3). All comparisons are with the equivalent 13-week period in 2011 (Q3 2011).
Key financial highlights
- Group Operating profit was up 26% in the period, 17% higher in the year to date
- Online Operating profit was up 42% and Retail Operating profit was 8% higher in the period
- Group net revenue grew by 9% and was up 10% in the year to date
- Retail net revenue grew by 3% and was up 4% in the year to date
- Online net revenue grew by 18% and was 26% up in the year to date
Key operational highlights for the quarter
- Mobile was 27% of Sportsbook turnover and averaged £10.7m of weekly Sportsbook turnover in Q3
- Strong Retail over-the-counter (OTC) gross win margin, up by 1.9 percentage points
- William Hill US integration activities completed on schedule in September
Ralph Topping, Chief Executive, commented:
"We saw strong Operating profit growth in the third quarter. Group net revenue remains well ahead of last year, with quarterly growth continuing broadly in line with that seen in the first half. Operating profit growth in the quarter further benefitted from favourable timing on Online marketing costs. The initial performance in the US is encouraging, with integration successfully completed and trading in line with expectations.
"The Olympics and Paralympics captured the public's attention but appear to have reduced customer visits in Retail. However, there were compensating factors, particularly the strong margin growth across all channels. We've had a good performance in football, including a strong Euro 2012 in July. It's also pleasing to see signs of improvement in horseracing margin trends.
"We look forward to another busy period ahead, including trialling a new machine cabinet in the estate in the last quarter. We have announced today a number of senior management appointments at William Hill Online, reshaping the management team to support the business's continued development and to increase the focus on our customers.
"As we announced on 16 October, we are progressing a potential offer in relation to Sportingbet. We are also announcing today that we intend to commence the valuation process relating to the minority share in William Hill Online prior to making a decision on this by the end of the first quarter of 2013.
"The Board remains confident in its expectations for the full year and focused on the Group's strategic opportunities to generate further value for shareholders."
