iGaming Business – UK bookmaker William Hill has cited two “substantial” loss-making weeks driven by football results as one of the main reasons for a year-on-year drop in profit during the three months to March 31, 2014.
The company reported that operating profit for the first quarter was down 14% on the same period last year. Retail suffered the most with a 25% drop while online operations also fell 6%. William Hill’s retail business was responsible for 57% of total group revenue, while online and Australian operations contributed 32% and 8% respectively.
Over-the-counter amounts wagered via the bookmaker’s retail business increased 3% but underlying net revenue fell 4%, leading to an overall operating profit drop.
The bookmaker’s online business was boosted by a 39% increase in the amounts wagered via its sportsbook, but sportsbook net revenue for the quarter fell 7%. This was slightly offset by a 16% increase in online gaming net revenue.
Despite the losses Ralph Topping, chief executive officer of William Hill, remains optimistic about the rest of 2014 and expects business to be helped by this summer’s 2014 Fifa World Cup national football tournament.
“Whilst the outstanding gross win margin in Q1 2013 sets a very high bar, meaning we are facing tough comparative figures, two substantial loss making weeks (week two and week 12) in this quarter – with major wins for the football punters – impacted profit progression despite good growth in wagering in both online and retail and significantly improved gaming performance in both channels,” Topping said.
“Looking ahead to the rest of 2014, it is positive to note online had recouped much of its shortfall against internal expectations following week two before we were hit again in week 12.
“While there is no guarantee we can make up the difference, we continue to believe the increased customer confidence from such wins should be good for business, especially in this World Cup year.
“We are very well placed to take advantage of the World Cup opportunity, coming in the second quarter, with an unrivalled football product range, the most downloaded sportsbook app in the UK and a leading mobile gaming offer for cross-sell.”
