William Hill continue to impress in financial circles after more positive growth31st January 2013 / lee
Betting site William Hill have once again been sending out positive waves after they were the top climbers on the FTSE 250 index this week. With such a strong finish to the year, Britain’s biggest bookmaker saw upswings in profits to the degree of 20% in the 14 weeks to January 1st. That came in two with a 12% rise in revenue for the betting site. Earnings before tax, interest and everything else is expected to be around £330 million, which is better than projections which were expected to be around £310 million.
The backbone of the growth for William Hill has been their online operations which have continued to gain momentum and popularity. Revenue alone from online operations took a huge 27% raise in the period, and with William Hill getting aggressive with the release of its Sportsbook iPad app in December of 2012, the numbers are expected to keep trending upwards over the next financial quarter. Along with the outreach in the app, growth has come from mobile gaming, virtual sports sites during the second half of last year.
Retail growth of William Hill grew 6% in the period, with an over the counter growth margin improvement up to 18.5%, up over one and a half percent from the previous year’s figure. With their profile and quality improving in the financial circles, the growth of the William Hill brand doesn’t look like slowly anytime soon. There will be a big sum going out though, as they finalise the expenditure of £454 million needed for their acquisition of Sportingbet.
William Hill agreed a deal to take over the Australian and Spanish markets of Sportingbet, and despite the layout, the projections following the takeover is to see an extra group pre-tax profit of 4% coming as a result of the extra market interest. William Hill are also still engaged in talks about the possible buyout of online venture partner Playtech, a deal which should get done in February of 2013. A buyout of Playtech could cost William hill around £400 million.