9th Aug 2019 08:58
(Alliance News) - William Hill PLC on Friday reported narrowed interim loss but slashed its dividend during a "period of transition" for the betting company.
Shares in William Hill were up 6.4% at 156.50 pence each in London on Friday morning, making it the best performer in the FTSE 250 index.
In the six months to June 30, the company's pretax loss narrowed to GBP63.5 million from GBP819.6 million, which was in line with William Hill's expectations. Revenue rose by 1.1% to GBP811.7 million from GBP802.9 million.
These are the first results since William Hill adopted a new strategy to build a "digitally led, internationally diverse gambling company".
The company reported retail revenue fall by 12% to GBP391.5 million from GBP444.1 million after it was hurt by the implementation a GBP2.0 stake limit in fixed odds betting terminals, and horse racing meet cancellations due to an equine flu outbreak earlier this year.
Online revenue rose by 14% to GBP367.3 million from GBP320.9 million but sportsbook amounts wagered fell by 2.8% to GBP2.28 billion from GBP2.35 billion. The comparative period last year included the first two weeks of the FIFA World Cup, William Hill highlighted.
The company noted that its international segment contributed GBP122.4 million of online revenue, up 66% from GBP73.7 million a year ago.
American revenue fell by 1.8% to USD49.8 million from USD50.7 million in constant currency but in actual currency, it rose 4.1% to GBP38.4 million from GBP36.9 million. The company is planning to expand in the US segment by launching a new National Football League technology platform before the start of the new season in September.
Looking ahead, the company said it expects full-year adjusted operating profit to be in the middle of its GBP50.0 million to GBP70.0 million range. Adjusted operating profit, which does not include restructuring costs, fell by 33% in the half to GBP76.2 million from GBP113.6 million.
The interim dividend was slashed by 38% to 2.66 pence per share from 4.26p.
Chief Executive Philip Bowcock said: "We are making good progress against the five-year strategy we outlined last year, delivering strong revenue growth in the US and other international markets and positioning William Hill well for future growth.
"We are becoming more diversified with non-UK markets now contributing a third of Online's revenues, up from just 24% last year. In the UK, performance has improved through the half, up 7% in Q2, as we manage the tax and regulatory impacts."
Georgina Harvey, the chair of the remuneration committee, will step down from the role on October 9 before leaving the company's board altogether at the end of the year. Lynne Weedall, who joined the firm in July, will chair the committee. Weedall also has the role at pub operator Greene King PLC.
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