William Hill Reports Strong Financials Despite Challenging Market Conditions

In its annual financial report for the fiscal year ending on December 31, 2023, William Hill presented a strong financial performance, which showed resilience and strategic progress in the market. 

William Hill Reports Slightly Lower 2023 Earnings, But Sees Growth in Key Areas

William Hill’s earnings for 2023 were £1.2 billion ($1.5 billion), slightly down from £1.24 billion ($1.6 billion) in 2022. This was boosted by the UK online division, which made £501 million ($638 million) despite being down 2% compared to last year. The company said that safer gambling measures and a more focused marketing strategy had impacted revenues.

Revenue in the UK retail business increased 5% from £514.2 million ($655 million) to £539.8 million ($688 million) even though the number of high street shops fell by 3%, driven by improvements in gaming cabinets and self-service betting terminals (SSBTs). International online brands including Mr Green made £185.6 million ($236.5 million), a decrease of 12% on £212 million ($270 million) last year due to compliance changes in different markets.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for 2023 were £224.4 million ($285.9 million), up from around £214 million ($272.7 million) in 2022. UK online adjusted EBITDA was worth £115.7 million ($147.4 million) with the UK retail arm contributing an adjusted EBITDA of £100.7 million ($128.3 million). International online saw an adjusted EBITDA of £31.9 million ($40.6 million) against last year’s figure of £33.1 million ($42.2 million).

William Hill’s Operating Profit Swings from Loss to Gain, But Forex Gain Drops Post-Tax Profit

Operating profit swung from a loss of around £31 million ($39.5 million) last year to a gain of around £114.1 million ($145.4 million) this time round but post-tax profit dropped mainly due to a one-off forex gain on financing items at almost £200 million ($254.8 million). 

Management at William Hill highlighted the ongoing 888 integration and plans to reduce some supplier reliance in order to take more control over technology. They flagged the potential opportunities and risks of moving to a single global technology platform for group content delivery. 

The company reported provisions of approximately £58.4 million ($74.4 million) related to customer compensation claims in Austria against £67 million ($85.4 million) last year. These have been rising since marketing campaigns by litigation funders began in 2020. 

William Hill is defending itself against these claims on public policy grounds with particular regard to Austrian and German court judgments being enforced in Malta and Gibraltar. 

Throughout what has been an eventful year for UK bookmakers, William Hill’s financial performance reflects its strategic resilience and market adaptability that positions it well for future growth amid ever-changing industry dynamics.