William Hill Seeks to Double Revenue by 2023

William Hill’s long-term strategy will be revolving around three key points: remodeling UK retail, driving digital growth in the UK and in other select global markets and US growing of business scale.

These were the conclusions of the company’s capital markets day back in November. Since reporting a net loss of £721 million during last year, it was widely expected that this betting conglomerate would readjust its financial goals…

…instead, however, the company’s officials have reconfirmed that the doubling of profits remains a key objective to be achieved by the end of 2023.

US Business Broadening Already

Profits of online businesses are aiming for a 100% increase and the US is seen as a market where the firm can become a leader. That, and maximization of cash flows in retail with the two percentage points in the market share gain were some of the matters touched upon during capital day.

William Hill’s chief executive, Philip Bowcock, states that the realization of three goals is already underway, with one leading the way in particular.

“We have started delivering on our strategy with the expansion of our US business, being first out of the blocks in all states that have regulated sports betting, and with the acquisition of Mr Green, which will the build-out of our international digital business.”

Modest Online Growth, With a Promising Future

2018’s £616.9m in online gaming revenue is a very humble 3% leap…

…but despite the deceleration, the company remains optimistic about this segment’s future as they expect the figure to be improved with purchase of Mr Green and online division hires.

Operators estimates of the US market predict that this particular market may generate somewhere between $5 billion and $19 billion in sports betting revenue by 2023. This would largely depend on how quickly and effectively the states would legalize this vertical. By the said year, US EBITDA is projected to grow from $46.2 to $300 million.

The official statement reads, in regards to this specific goal:

“This is a major new market opportunity that William Hill is very well placed to pursue as we are the US’s leading sports betting company. We aim to maintain our market leadership and intend to enter every state that regulates sports betting.”

The Calm Before the Storm

Regulus Partners’ analyst note, which was published on March 1st, pointed out that this period was “the calm before the storm when it comes to retail” and that the key issue is that “FOBT revenue was easy too generate operationally.”

“WH’s new revenue sources are much tougher to deliver operationally, while also having a far more complex and no less challenging regulatory-strategic dimensions (if at least not mono-product centred): William Hill has improved, but whether it has improved enough remains to be seen.”

On the other hand…

…Fidelity Personal Investing showed more optimism about Hill’s ambitions, as their associate director, Emma-Lou Montgomery, states that the group “now know what it’s up against and has clear plans to turn this into a winner.”

Source:

“William Hill recommits to doubling profits by 2023”, igamingbusiness.com, March 1, 2019.