William Hill share price: Q4 and full-year revenue up

on Jan 17, 2014
Updated: Oct 21, 2019
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iNVEZZ.com, Friday, January 17: William Hill Plc (LON:WMH) posted its trading update for the fourth quarter this morning, which showed that the bookmaker had enjoyed a strong finish to the year. The group’s Q4 and full-year revenue increased from a year ago, and the company saw a significant increase in money wagered through its online sportsbook in the final months of the year.

Despite the strong performance last year, William Hill’s share price fell 2.4 percent to 363.61p in today’s trading as of 10:36 UTC. The decline was probably triggered by William Hill’s update on current trading, which revealed that the bookmaker had recently taken a big hit on UK football match bets. The company recorded a £13 million loss in week two of 2014 after all top seven teams in the Barclays Premier League won their matches last weekend. William Hill said that the losses may not be recouped, but it added that the large payouts may boost customer confidence, thus benefitting the company in the run-up to the World Cup in Brazil.

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**Fourth quarter**
“Q4 proved a strong end to the year as we enjoyed continued momentum in Sportsbook with 38% more wagered in Q4 on a 13 week basis than last year. This demonstrates our competitive strength in Online ahead of the expected introduction of the Point of Consumption tax in December 2014,” commented William Hill Chief Executive Officer Ralph Topping.

Topping also said that the company had made good progress on key initiatives in the quarter, including the improvement of its mobile gaming offer.
William Hill’s total online net revenue and total retail net revenue both rose six percent in the final 13 weeks of the year, compared to the fourth quarter a year earlier. On a 13-week basis, whereby the final week of the 14-week final quarter of 2012 is excluded from the comparison, online and retail net revenue increased by 14 percent and 13 percent respectively.

Fixed odds in-store betting machines were a big earner for the company, generating, on a 13-week basis, 24 percent more net revenue in Q4 than in the same period a year earlier. Betting machines have come under severe scrutiny due to the amount of money gambled on them.

William Hill confirmed today that it will work with the government and the regulator to tackle these concerns.
**Full year**
Meanwhile, full-year net revenue increased 16 percent year-on-year (up 18 percent on a 52-week basis excluding the final week of 2012). Within this result retail net revenue was up eight percent (up 10 percent on a 52-week basis) and online retail revenue was up 10 percent (up 12 percent on a 52-week basis).
The company said it expects operating profit of around £334 million broadly in line with forecasts. It will publish full results on February 28.
**As of 11:57 UTC buy William Hill shares at 366.10p**
**As of 11:57 UTC sell William Hill shares at 366.00p**
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