Management at William Hill (WMH) has set itself three main tasks: to grow the digital business, increase scale in the US and remodel UK retail. Judging by the bookie’s trading update, this seems prudent. Online net revenue increased by 4 per cent during the 43 weeks to 23 October, while retail net sales fell 4 per cent, and in the US net revenue improved by 36 per cent in local currency. The group is now trading in four states, with access secured to a further 17 as part of a partnership with Eldorado Resorts. It’s further diversified digitally and internationally with the recent acquisition of Mr Green, which is forecast to contribute around £25m in cash profits in 2019. Synergies of around £6m are expected by 2021.
But regulatory and tax changes will act as a headwind for the online business. Increased customer due diligence and the increase in remote gaming duty from 15 per cent to 21 per cent is expected to wipe £20m off profits in 2018 and a further £25m in 2019, after which the online business is expected to return to “strong profit growth”. This hasn’t stopped the company from setting targets of £1bn in online sales, doubled digital profit and $300m US cash profits, all by 2023.