July 5, 2023 – London – William Hill Limited, a global betting and gaming group operating under the William Hill and Mr Green brands, recently disclosed its financial results for the 52 weeks ended on December 27, 2022.
The company, which is now a subsidiary of 888 Holdings PLC following its acquisition on July 1, 2022, reported net revenue of £1,235.3 million in 2022, slightly down from £1,241.4 million in 2021.
Despite the slight decrease in revenue, the group’s Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) experienced a surge from £161.7 million in 2021 to £214.8 million in 2022. Profit after tax also showed a significant improvement, shifting from a loss of £58.9 million in 2021 to a gain of £168.4 million in 2022.
This performance was driven by a few key factors. The retail business recorded an impressive increase in net revenue by 53%, moving from £336.8 million in 2021 to £514.2 million in 2022, which was mainly due to the return of customers to betting shops following the Covid lockdown in 2021.
The UK online business, on the other hand, experienced a decrease in net revenue by 19%, moving from £628.6 million in 2021 to £509.1 million in 2022. This decrease was due to customers returning to physical stores after the Covid lockdown, and the implementation of enhanced customer safety checks in light of the UK government's white paper review into gambling safety reform.
The International business also experienced a decrease in revenue by 23%, from £276.0 million in 2021 to £212.0 million in 2022. This was largely due to additional regulatory measures and the company's exit from the Netherlands market.
Despite these challenges, the company has continued to focus on its more profitable core markets and has realised cost-saving synergies from the merger with 888.
Apart from the changes in the financial performance, William Hill underwent several structural changes. A new slate of directors was appointed including Mr P V N Le Grice and Virtual Internet Services Ltd, replacing the outgoing Mr R U Bengtsson, Mr W T J Hageman and Mr B Yunker.
The company also highlighted various emerging risks, including the ongoing situation in Ukraine and significant inflationary pressures from increased energy, transport, and commodity costs. These uncertainties, coupled with the potential for tax and duty changes in response to the Covid-19 pandemic, were identified as challenges that could impact the company's growth prospects and cost base.
However, the company expressed confidence in its ability to navigate these challenges, citing the strength of its compliance and risk management measures and its strategic focus on more profitable core markets.
In conclusion, despite facing several operational and market challenges, William Hill Limited has managed to achieve solid financial results, driven by the resilience of its retail business and prudent financial management.
Please see the full annual report for additional details and insights.