TIDMWMH
RNS Number : 1421Q
William Hill PLC
16 June 2020
William Hill PLC
Strong recovery: Trading update to 9 June 2020
16 June 2020
William Hill PLC (LSE: WMH) ("William Hill" or the "Group"), one
of the world's leading betting and gaming companies, provides a
trading update for the unaudited six weeks to 9 June 2020.
We have been delighted to see a strong recovery in recent weeks
with the easing of COVID-19 restrictions and the progressive return
of sporting events. Our swift actions have enabled us to respond
competitively while enhancing customer protection and delivering
against our product development goals. We expect the trading
backdrop to remain uncertain but are encouraged to see both Online
and the US performing ahead of our initial expectations.
Since our update on 15 May 2020 our monthly cash outflow has
reduced and we have repaid the outstanding GBP203m on the 2020
bond. We now have unrestricted liquidity in excess of GBP500m and a
line of sight to generating positive cash flow from our operations
in the second half of the year.
On 20 May 2020 we announced that we expected a material refund
of VAT which had been incorrectly applied to certain gaming
machines. Following further engagement with HMRC and our legal
advisors, we now expect this refund to be received in the second
half of 2020 and for it to be roughly equivalent to the value of
the bond repayment.
Divisional performance
Operating performance: 23 weeks to 9 June 2020
In GBP (1)
------------------------- ------------------------------------------------------------
Total net revenue Weeks 1-23 Weeks 1-10 Weeks 11-17 Weeks 18-23
growth (YoY) Pre-Coronavirus Coronavirus Coronavirus
------------------------- ----------- ----------------- ------------- -------------
Online -1% +16% -21% -3%
Online UK -10% +7% -33% -8%
Online International +17% +35% +5% +7%
Retail Like-for-like(2) -50% -3% -85% -100%
US -24% +30% -90% -62%
------------------------- ----------- ----------------- ------------- -------------
Group -32% -5% -57% -50%
Notes
1. Growth rates are based on statutory results unless stated otherwise.
2. Like-for-like (LFL) presents the cumulative results for the
period on a same-shops basis (excluding those permanently closed in
the prior and current year but including those temporarily closed
due to Covid-19).
During the six weeks to 9 June 2020, Group total net revenue has
improved following the steady recovery of the sports calendar,
albeit behind closed doors.
Online sports wagers improved significantly throughout the
period, benefitting from the resumption of horseracing and the
German Bundesliga. During March and April customers continued to
place bets on alternative products such as table tennis and we are
pleased to note that activity has remained high alongside the
return of horseracing and football. New product development
launches continued to gain traction with a robust performance from
the new gaming front end deployed in the UK.
Retail is 'powering up' the estate in phases now Licensed
Betting Offices are permitted to re-open in England, coinciding
with horse racing at Royal Ascot and the resumption of English
football. We will be implementing measures to ensure social
distancing requirements are adhered to, protecting our customers
and colleagues. We will be opening the retail estate gradually,
with a deliberate focus on those sites that we anticipate will have
the most profitable footfall.
US sports staking benefitted significantly from the availability
of alternative sports and the resumption of UFC and NASCAR in May.
Although many casinos remained closed we operated drive-through
sportsbooks in Nevada, a state where our customers must sign up in
person to use the William Hill app. This initiative proved popular
and generated considerable re-engagement online. Our tech teams
continued to press ahead with development plans and we are on track
to launch online gaming in New Jersey upon receipt of regulatory
approval.
Outlook
We have gained greater visibility of the sporting calendar.
Horseracing has returned behind closed doors and the English
Premier League is scheduled to return on 17 June 2020. We continue
to monitor developments in the US as casinos re-open across several
states and note the NBA has approved a plan to resume the 2019-20
season under a 22 team format.
While we remain cognisant that sports betting activity and
retail footfall are likely to remain uncertain throughout the rest
of 2020 and into 2021, our mitigation strategies have reduced
costs, retained liquidity and ensured that capital expenditure
related to growth plans has been preserved. Our product development
plans remain a priority, especially in the US, where they have
accelerated to ensure we emerge from this period of disruption in a
stronger competitive position.
Ulrik Bengtsson, CEO, commented:
"The return of sporting events has driven a strong recovery in
our online volumes. Our UK Online business is in a better place
than ever and our international business is displaying solid
growth. In the US we have used this period of lockdown wisely to
move our product forward and we are now in a strong position to
capitalise on the US growth opportunity that lies ahead".
OAM: Additional Regulated Information
William Hill LEI: 213800MDW41W5UZQIX82
Enquiries
=============================================================
William Hill Louise Turner-Smith, Director Tel: +44 (0) 20 7612
of Investor Relations 3251
Alison Cole, Director of Corporate Tel: +44 (0) 20 7612
Communications 3233
Brunswick Andrew Porter / Samantha Chiene Tel: +44 (0) 20 7404
5959
About William Hill
===============================================================
William Hill PLC is one of the world's leading betting and
gaming companies, employing c.12,000 people. Its origins are in the
UK where it was founded in 1934, and where it is listed on the
London Stock Exchange. The majority of its GBP1.6bn annual revenues
are still derived from the UK, where it has a national presence of
licensed betting offices and one of the leading online betting and
gaming services. William Hill's European Online business is
headquartered in Gibraltar and Malta, and is licensed online in 10
countries following the acquisition of Mr Green & Co AB in
January 2019. In 2012, it established William Hill US with a focus
on retail and mobile operations in Nevada and became the largest
sports betting business in the US. Following the ruling in May 2018
by the Supreme Court that the federal ban on state sponsored sports
betting was unconstitutional, William Hill US has expanded and
continues to expand as new states regulate sports betting. It is
now operating in nine states: Delaware, Indiana, Iowa, Mississippi,
Nevada, New Mexico, New Jersey, Rhode Island and West Virginia in
addition to Washington DC. Eldorado Resorts, Inc. currently owns
shares representing 20% of the share capital of William Hill US
Holdco, Inc., the holding company of William Hill US.
Cautionary note regarding forward-looking statements
=====================================================
This announcement 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
these results and the information incorporated by reference into
these results 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. 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
these results and/or the information incorporated by reference into
these results. 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 these
results and/or the information incorporated by reference into these
results, 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 Market Abuse Regulation (596/2014), the Listing Rules,
the Disclosure Guidance 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTSFFFDMESSELM
(END) Dow Jones Newswires
June 16, 2020 11:35 ET (15:35 GMT)
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