James Henderson marked his first day as chief executive of William Hill (WMH) by announcing a record-breaking World Cup performance, with the number of bets 80 per cent higher than during the 2010 tournament. Former boss Ralph Topping worked at William Hill for 44 years; with 29 years at the group under his belt, Mr Henderson is only a slightly younger hand.
Mr Henderson has identified three areas for investment and growth: developing the multi-channel offering, improving the technology behind William Hill's digital products, and expanding the international business. The group currently serves customers across the UK, Spain, Italy, the US and Australia. Mr Henderson said he would "not rule anywhere out" when choosing where to head next.
William Hill's figures for the first half were less inspiring. More than half of operating profits came from online wagers and the Australian business, implying that recent efforts to diversify the revenue stream ahead of regulatory changes are paying off. But group operating profits fell 2 per cent to £177m as top-line gains were more than offset by rising costs. Looming tax changes are another worry: analysts believe the point-of-consumption tax, due to be introduced in December, could cost William Hill a further £70m.
Broker Numis expects pre-tax profits of £299m for the full year, giving EPS of 27.7p.
WILLIAM HILL (WMH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 342p | MARKET VALUE: | £2.99bn | |
| TOUCH: | 342-343p | 12-MONTH HIGH: | 495p | LOW: 315p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 123p* | NET DEBT: | 67% | |
| Half-year to 1 July | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 752 | 144 | 14.5 | 3.7 |
| 2014 | 805 | 122 | 11.3 | 4 |
| % change | +7 | -15 | -22 | +8 |
Ex-div: 23 Oct Payment: 5 Dec *Includes intangible assets of £1.87bn, or 214p a share | ||||
