UK betting operator William Hill reported record operating profit in 2014 thanks to continued strengths in its digital division.
Revenue rose 8% last year to £1.6b while operating profit rose 11% to £372m. However, exceptional items dragged net profit after tax down 9% to £206.3m. Results were buoyed by the 2014 FIFA World Cup, which generated nearly £227m in wagers, of which Hills kept £40.5m. Compared to the 2010 footie fest, retail wagering declined £4m while online grew by £108m.
William Hill Online revenue rose 18% to £527.4m, representing 32% of the overall revenue pie. Digital sportsbook revenue rose 19% to £253m thanks largely to mobile wagering, which rose 48%, representing 56% of digital sports revenue. Mobile stakes grew 55% while desktop stakes grew by a comparatively paltry 11%. Mobile win margin (9%) also outpaced desktop (6.2%). Pre-match handle rose 23% to £2.1b while in-play handle rose 36% to £1.6b.
Digital gaming revenue rose 17% to £274m, with casino up 23% to £235m. Bingo fell 2% to £23.7m while the poker vertical fell 18% to £14.9m. As with sports, mobile gaming was the star performer, with revenue up 117%, representing 32% of total gaming, while desktop gaming revenue fell 3%.
Revenue from outside the UK accounted for 18% of the total, up from 15% in 2013 and twice 2012′s 9%. In Italy, revenue rose 39% thanks to an increased range of sports betting products on offer and the launch of mobile gaming and sports products. In Spain, revenue was up 64%. Hills had a 9% share of the 2014 Italian sports betting market and a 19% share in Spain. Combined, the two markets generated a net loss of £6m but Hills hopes to break even in both markets in 2015.
William Hill Australia generated 8% of group revenue, with stakes up 18%, revenue up 41% to £122m and profit up 106% to £24.7m. William Hill US betting handle rose 21% and revenue rose 31% to £29.7m. Hills’ telephone wagering business saw handle fall 16% and revenue was down 28% to £11.8m, resulting in a net loss of £800k for the division.
Hills retail operations continued to account for the bulk (57%) of revenue. OTC wagering handle grew slightly but OTC revenue fell 5% to £450m thanks to punter-friendly results and a bad comparison with 2013’s high win rate. Gaming machine revenue rose 6% to £462m. Hills had 2,362 shops at the end of 2014.