2014 final results presentation 27 February 2015 James Henderson, CEO Neil Cooper, Group Finance Director 19 times Champion Jockey AP McCoy has announced his retirement in 2015. Small pictures, top to bottom: entering the parade ring on Carlingford Lough after winning the Hennessy Gold Cup during the 1 Hennessy Gold Cup Day at Leopardstown Racecourse, Ireland, February 2015; and on Binocular on his way to victory in the williamhill.com Christmas Hurdle Race, January 2011
Disclaimer This presentation has been prepared by William Hill PLC (“William Hill”). This presentation includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "plans", "goal", "target", "aim", "may", "will", "would", "could" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and the information incorporated by reference into this presentation, and include statements regarding the intentions, beliefs or current expectations of the directors, William Hill or the Group concerning, amongst other things, the results of operations, financial condition, liquidity, prospects, growth, strategies and dividend policy of William Hill and the industry in which it operates. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond William Hill's ability to control or predict. Forward-looking statements are not guarantees of future performance and hence may prove to be erroneous. The Group's actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which it operates may differ materially from the impression created by the forward-looking statements contained in this presentation and/or the information incorporated by reference into this presentation. In addition, even if the results of operations, financial condition, liquidity and dividend policy of the Group and the development of the industry in which it operates are consistent with the forward-looking statements contained in this presentation and/or the information incorporated by reference into this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Other than in accordance with its legal or regulatory obligations (including under the Listing Rules, the Disclosure and Transparency Rules and the Prospectus Rules), William Hill does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. 2
2014: a record year World Cup Retail Online Australia Other UK Non-UK 372.2 3% 3% 335.0 330.6 8% 6% 15% 18% 276.8 275.7 30% 32% 85% 82% 61% 57% 2013 2014 2010 2011 2012 2013 2014 2013 2014 £372.2m 40% 18% Record operating of net revenue from of net revenue from profit 1 , up 11% digital businesses 2 international markets 1. Operating profit/loss is defined as pre-exceptional profit/loss before interest and tax, and the amortisation 3 of specific identified intangible assets recognised on acquisitions 2. Online and William Hill Australia
Neil Cooper 2014 financial results My Tent Or Yours ridden by Tony McCoy wins the williamhill.com Christmas Hurdle Race during Day One of the William Hill Winter Festival at Kempton Park Racecourse, December 2013 4
A year of record operating profit 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 £m £m Amounts wagered 1 8,945.7 7,800.8 +15% Net revenue 1,609.3 1,486.5 +8% Operating profit 2 372.2 335.0 +11% Amortisation (9.0) (10.9) -17% Net finance costs (45.9) (44.3) +4% Tax (63.1) (32.2) +96% Non-controlling interest - (15.3) - Retained profit 254.2 232.3 +9% Basic, adjusted EPS (p) 3 29.9 28.8 +4% Net debt for covenant purposes 602.8 796.0 -24% Dividend per share (p) 12.2 11.6 +5% Numbers are presented on a pre-exceptional basis. 1. Amounts wagered comprises the gross takings in OTC, Telephone, US, Australia and Online Sportsbook, and net revenue in Retail gaming machines and Online gaming products. 2. Operating profit is defined as pre-exceptional profit before interest and tax, before the amortisation of specific intangible assets recognised on acquisitions. 5 3. Basic, adjusted EPS is based on profit for the period before exceptional items and before the amortisation of specific intangible assets arising on acquisitions.
Exceptional items 52 weeks ended 52 weeks ended 30 Dec 2014 31 Dec 2013 £m £m Accelerated Australian brand amortisation (44.5) - One-off shop portfolio closure (19.4) - European indirect taxation provision (9.7) - tomwaterhouse.com integration (3.3) (2.0) Revaluation of tomwaterhouse.com earn-out (2.2) - Write-off of unamortised finance fees (2.0) - Write-off of fees on bridge loan - (1.7) Australia management restructuring cost (1.8) - Repayment of VAT refund and interest (0.5) (5.6) Sportingbet acquisition and integration - (13.5) Pre-tax (83.4) (22.8) Release of tax provision 15.4 - Tax consequence of exceptional items 20.1 1.7 Post-tax (47.9) (21.1) 6
Retail gaming growth and strong cost control mitigate OTC margin decline 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 £m £m OTC amounts wagered 2,452.2 2,439.9 +1% OTC gross win 449.7 472.8 -5% OTC gross win margin 18.3% 19.4% -1.1 ppts Machines gross win 461.8 440.0 +5% Total gross win 911.5 912.8 -0% Net revenue 1 911.4 907.0 +0% Cost of sales (209.9) (203.3) +3% Gross profit 701.5 703.7 -0% Operating costs (508.3) (507.4) +0% Operating profit 2 193.2 196.3 -2% 1. Adjusting for the Machine Games Duty effect, Retail net revenue was flat. 2. Operating profit is defined as pre-exceptional profit before interest and tax, before the amortisation of 7 specific intangible assets recognised on acquisitions.
Retail OTC wagering and margin trends Amounts wagered: H1 2014 v H1 2013 Gross win margin: full year trend 40% 35% 35% % Change in amounts wagered 2014 2013 30% 30% 20% 10% 25% 2% Retail gross win margin 0% 20% -1% -3% -5% -10% 15% Horseracing Greyhounds Football Other Total 10% Amounts wagered: H2 2014 v H2 2013 5% 4% 3% % change in amounts wagered 0% 2% 0% 0% -2% -1% -1% -4% -5% -6% Horseracing Greyhounds Football Other Total 8
Retail gross win per machine shows good growth 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 Average number of LBOs 2,406 2,401 +0% Average number of machines 9,458 9,431 +0% Machine density 3.93 3.93 - Gross win per machine per week £939 £897 +5% Machine gross win margin 3.44% 3.37% +0.07 ppts Machine quarterly gross win growth 118 8.0% 117 7.0% 7.6% 116 6.0% 115 5.0% 114 £m 4.0% 4.8% 4.3% 113 3.0% 112 3.3% 2.0% 111 1.0% 110 109 0.0% Q1 2014 Q2 2014 Q3 2014 Q4 2014 Gross win Growth % (2014 v 2013) 1. Compared with 52 weeks of 2012 9
Retail demonstrates good cost control 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 £m £m Employee costs (195.2) (199.9) -2% Property costs (101.4) (102.8) -1% Content costs (70.2) (64.3) +9% Depreciation (29.5) (28.4) +4% Other costs incl. recharges (112.0) (112.0) - Operating costs (508.3) (507.4) +0% Retail cost causal 1.1 (2.6) 5.3 510 8.6 508.3 0.3 (1.3) 507.4 (4.3) (7.0) 508 506 0.8 504 502 £m 500 498 496 494 492 490 10
Online revenue growth from both Sportsbook and Casino 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 £m £m Sportsbook 253.3 212.9 +19% Casino 235.5 191.0 +23% 2014 Online net revenue by geographic split Poker 14.9 18.2 -18% Bingo 23.7 24.2 -2% 17% Gaming net revenue 274.1 233.4 +17% 4% Net revenue 527.4 446.3 +18% 5% Cost of sales (51.0) (40.2) +27% 74% Gross profit 476.4 406.1 +17% Operating costs (298.7) (258.3) +16% UK Italy Spain Other Operating profit 1 177.7 147.8 +20% 11 1. Operating profit is defined as pre-exceptional profit before interest and tax, before the amortisation of specific intangible assets recognised on acquisitions.
Online wagering increased, pre-match margins weaker 52 weeks ended 52 weeks ended % Change 30 Dec 2014 31 Dec 2013 Unique active players (’000) 1 2,467.9 2,360.7 +5% Revenue per unique active player (£) 213.7 189.1 +13% New accounts (’000) 2 1,225.2 1,141.0 +7% Average cost per acquisition (£) 3 107.8 107.4 +0% Sportsbook amounts wagered (£m) 3,758.2 2,931.7 +28% - Pre-match amounts wagered (£m) 2,116.1 1,724.5 +23% - In-play amounts wagered (£m) 1,642.1 1,207.2 +36% Sportsbook gross win margin 7.6% 8.1% -0.5 ppts - Pre-match gross win margin 9.3% 10.0% -0.7 ppts - In-play gross win margin 5.3% 5.3% - 1. Placed a bet within the period 12 2. Registered and transacted within the period 3. Including affiliates
Recommend
More recommend
