Corporate By William Hill PLC

2017 Final Results

 William Hill PLC (LSE: WMH) (William Hill or the Group) announces its final results for the 52 weeks ended 26 December 2017 (the period or 2017). Comparatives relate to the 52 weeks ended 27 December 2016.

 

Statutory results

Adjusted results

 

52 weeks to
26 Dec 17
£m

52 weeks to
27 Dec 16
£m

Change
%

52 weeks to
26 Dec 17
£m

52 weeks to
27 Dec 16
£m

Change

%

Net revenue

1,711.1

1,603.8

+7%

1,711.1

1,603.8

+7%

Adjusted operating profit1

-

-

-

291.3

261.5

+11%

(Loss)/profit before interest and tax

(43.7)

225.6

-

-

-

-

(Loss)/profit before tax

(74.6)

181.3

-

254.9

214.0

+19%

(Loss)/earnings per share (p)2

(9.7)

18.9

-

27.6

22.3

+24%

Dividend per share (p)

13.2

12.5

+6%

13.2

12.5

+6%

Good progress against three strategic priorities

UK market share growth:

  • Both Online and Retail growing at or above market growth rates
  • Online: double-digit growth in both Sportsbook and gaming net revenue
  • Retail: technology led improvements in shops

International revenue growth:

  • US net revenue up 29% and adjusted operating profit1 up 24%, investing in readiness for decision on PASPA appeal due in 2018
  • Australian business acquired in 2013 undergoing strategic review, to conclude by mid-2018

Transformation and technology programmes:

  • Transformation programme reaches 2017 target of £25m in-year savings and £40m of annualised efficiency gains
  • Investment in technology delivering improved product development, marketing, business flexibility and efficiency

Financial results

  • Group net revenue up 7% to £1.7bn and adjusted operating profit1 up 11% to £291.3m
  • Operating exceptional charge and adjustments of £335.0m including £238.3m impairment in the value of the Australian business arising from regulatory and tax changes and a £61.7m charge for the transformation programme
  • Strong cash generation with operating cash flow up 9% to £290.1m
  • Strong balance sheet with net debt for covenant purposes3 of £515.2m, 1.4x EBITDA
  • Full-year dividend increased 6% to 13.2p per share, in line with policy to pay out approximately 50% of underlying earnings and reflecting the Board’s confidence in the underlying business

Philip Bowcock, Chief Executive Officer of William Hill, commented:

“William Hill begins 2018 in a stronger position after a year of significant change for the business. We continue to gain ground in the UK where customers are responding to our improved Online and omni-channel offers. We are a leader in sports betting in the US and are well positioned to benefit should more states start to regulate if the pending Supreme Court decision is positive. 

“Looking ahead, we will invest in more innovation in Online and our omni-channel platform, as well as in the US to ensure we can unlock its full potential at the right moment. A key pillar of our strategy moving forward will be to act in a sustainable way. While it is imperative that the gambling sector as a whole embraces this, there is no doubt that leading brands like William Hill must play a key role in setting the right standards and taking greater account of all our stakeholders. In the months ahead we will be taking a number of steps as a matter of urgency to ensure that we embed this approach in our business for the long term.

“Having transformed many areas of the business, momentum continues to build and the significantly strengthened leadership team is focused on delivering on the exciting growth opportunities that lie ahead of us.”

Notes:

  1. Adjusted operating profit is defined as profit before interest and tax, excluding exceptional items and other defined adjustments. Further detail on adjusted measures is provided in note 3 to the financial statements within our 2017 Annual Report.
  2. Basic EPS is based on an average of 856.9 million shares for 2017 and an average of 8 million shares for 2016. Adjusted EPS is based upon adjusted profits after tax.
  3. Net debt for covenant purposes and EBITDA for covenant purposes are non-statutory measures. The basis of calculation is as described in note 23 to the financial statements within our 2017 Annual Report.
  4. Definitions are provided in the glossary at the back of the document.
  5. Numbers are presented on an adjusted basis unless otherwise stated.

OAM: Inside Information

William Hill LEI: 213800 MDW41W5UZQ1X82

 



Enquiries

 

William Hill

Philip Bowcock, CEO

Ruth Prior, CFO

Lyndsay Wright, Director of Strategy, Brand and IR

Tom Randell, Head of Investor Relations

Ciaran O’Brien, Director of Communications

Tel: +44 (0) 20 7612 3000

Brunswick

Andrew Porter / Chris Buscombe

Tel: +44 (0) 20 7404 5959

 

 

Analyst and investor presentation

 

Meeting

Friday, 23 February 2018 at 9.30 am GMT

Radisson Blu Edwardian Hotel, 9-13 Bloomsbury Street, WC1B 3QD

Live conference call

Tel: +44 (0) 20 3936 2999. Access code 052674

Archive conference call

Tel: +44 (0) 20 8196 1998. Access code: 2514998#. Available until 2 March 2018

Video webcast

www.williamhillplc.com

Debt investor conference call

 

Live conference call

11.30 am GMT. Tel: +44 (0) 20 3936 2999. Pass code: 865904

Archive conference call

Tel: +44 (0) 20 3936 3001. Passcode 897368#. Available until 2 March 2018

 

William Hill, The Home of Betting, is one of the world's leading betting and gaming companies, employing around 16,000 people. Founded in 1934, it is the one of the UK's largest bookmakers with around 2,340 licensed betting offices that provide betting opportunities on a wide range of sporting and non-sporting events, and gaming on machines, providing customers with the opportunity to access William Hill's products online, through their smartphone or tablet. William Hill US was established in June 2012 and provides land-based and mobile sports betting services in Nevada, and is the exclusive risk manager for the State of Delaware's sports lottery. William Hill Australia was established in 2013 when the Group acquired Sportingbet and tomwaterhouse.com. It offers sports betting products online, by telephone and via mobile devices. William Hill PLC is listed on the London Stock Exchange and is a member of both the FTSE 250 and FTSE4Good Indices. Notes to editors

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

Cautionary note regarding forward-looking statements

 These results include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout these results and the information incorporated by reference into these results and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond William Hill's ability to control or predict. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in these results and/or the information incorporated by reference into these results. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates, are consistent with the forward-looking statements contained in these results and/or the information incorporated by reference into these results, those results or developments may not be indicative of results or developments in subsequent periods. Other than in accordance with its legal or regulatory obligations (including under the Market Abuse Regulation (596/2014), the Listing Rules, the Disclosure Guidance and Transparency Rules and the Prospectus Rules), William Hill does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. 

 

Download the Full 2017 Final Results in PDF format