20th Jan 2015 07:32
LONDON (Alliance News) - William Hill PLC Tuesday said revenue and adjusted operating profit fell in the fourth quarter of 2014 as football results went against it over the Christmas holidays, and it suffered a similar fate in the third week of 2015 although it said it has started the new year in a strong position.
The company also said it will rebrand its Australian operations to the William Hill brand.
In a trading statement, the betting operator said net revenue was down 2% in the 13 weeks to December 30, while its adjusted operating profit, which excludes exceptional items and some amortisation, fell 7%.
The company said it experienced generally weaker sporting results in December, although gaming revenue continued to grow.
"In particular, Boxing Day - one of the busiest days in our year - was a very good day for the customer with all but one of the top ten football favourites winning that day," it said.
Still, the company's revenue was up 8% for the financial year as a whole, while its adjusted operating profit rose 11%, which it said was its best-ever operating result. It expects adjusted operating profit for the year to be about GBP371 million, while amortisation is expected to be about GBP9 million and its pre-exceptional effective tax rate 20%. The tax rate will drop to 19% in 2015, it said.
It reported an 18% increase in online revenue, a 41% increase in its Australian operations or 11% in local currencies, and US revenue was up 30%. Telephone revenue fell 28%.
"Notwithstanding a difficult start to the new year with highly unfavourable football results in week 3, we remain in a strong position going into 2015. Online is very well positioned as the new Point of Consumption Tax regime starts and we continue to diversify successfully, with 18% of our revenues now coming from outside the UK," it said.
By Steve McGrath; [email protected]; @stevemcgrath1
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