William Hill expects full-year adjusted operating profit1 for 2017 to be £290m, around 11% up on 2016.
To put into context, 2016 was a very challenging year for the company. It issued several profit warnings after a series of “customer-friendly” football and horseracing results at the tail end of that year hit profits hard.
According to the national bookmaker, the improved forecast for 2017 reflects good momentum in both the UK and US markets, stronger gross win margin and the benefits of the transformation programme.
Retail and online gross win margins are ahead of expectations and significantly ahead of the same period in 2016, due to favourable football and horseracing results.
As a result, wagering growth rates slowed but overall net revenue was strong. Gaming growth rates continued to accelerate in online but slowed in retail.
Internationally, the US continued to grow at double-digit rates while Australia was affected by reduced credit betting volumes.