William Hill posted solid results in 2022, successfully navigating post-pandemic trends in the legal sports betting world and a series of mergers and acquisitions.
William Hill, one of the leading UK betting sites, released its 2022 Annual Report and Financial Statements just last week. Overall, the company was able to pare its operating losses, while posting a modest profit of £168.4m.
In the UK, William Hill’s revenues were essentially flat year-to-year. There was a significant change, however, in the source of those revenues — especially in the UK. UK retail revenues jumped 53% in 2022, as many bettors returned to in-person betting. Meanwhile, its online revenues in the UK slowed, dropping 19% when compared to 2021.
It’s a bit challenging to parse William Hill’s 2022 results, primarily because of its merger and acquisition activity over the past couple of years. In late 2020, William Hill agreed to be acquired by Caesars Entertainment. Caesars, however, was more interested in William Hill’s US assets. So, Caesars sold off William Hill’s non-US assets to 888 Holdings. That acquisition was completed in July of last year.
Weathering the storm
Expecting a more tumultuous year, William Hill prudently trimmed its marketing expenses by roughly 30%. That helped offset some of the legal and integration costs associated with its sale and subsequent acquisition. Meanwhile, a more favorable foreign currency exchange rate on the group’s debt helped nudge William Hill into profitability.
Like all UK betting sites, William Hill is anticipating regulatory changes, given the publication of the Gambling Commission’s white paper earlier this year. To some extent, it is trying to stay ahead of those changes. For instance, Willian Hill has already implemented enhanced customer safety checks ahead of the UK’s potential rules changes.
William Hill may get more help navigating those changes. Last month, a team of experienced gambling investors bought a 6.6% stake in William Hill’s parent company 888 Holdings. The investment group, FS Gaming Investments, includes the former CEO of GVC Holdings Kenny Alexander and Stephen Morana, formerly of Betfair.
