(Alliance News) - William Hill PLC on Wednesday said it ended an "extraordinary year" with single-digit fourth-quarter revenue growth.
The bookmaker is potentially just two months away from leaving the London stock market as the GBP2.9 billion buyout from Caesars Entertainment Inc edges closer toward completion.
William Hill shares were 0.2% higher at 269.80 pence each in London on Wednesday morning. Giving it a market capitalisation of around GBP2.83 billion.
The FTSE 250-listed firm said Caesars expects all remaining US approvals to be obtained in the second quarter, but "possibly as early as March 2021".
William Hill ended 2020, "a year like no other", with 9% fourth-quarter annual net revenue growth.
"Sportsbook staking increased 16%, driven by enhanced products and geographical expansion, whilst gross win margins benefited from favourable sporting results, driving group sportsbook net revenue up 20% year-on-year," William Hill said.
Total net revenue for 2020 fell 16% to GBP1.32 billion, William Hill said.
It was an "extraordinary year", it added, though largely for the wrong reasons as the Covid-19 pandemic cancelled sporting events across the globe, therefore shutting off important revenue streams for bookmakers.
High street betting shops across the UK have been forced to close for prolonged periods due to lockdown measures. William Hill said its retail arm had a 30% like-for-like net revenue fall in 2020.
"When open, with no restrictions, Retail traded well and profitably. At the end of the third quarter Retail was on course for a breakeven outcome for the full year. However, the Covid-19 related restrictions experienced during the fourth quarter impacted all our 1,414 shops at some point, resulting in a full year loss of GBP30 million," the company explained.
William Hill's online arm had a 5% revenue rise in the UK, however.
Online international posted a 12% pro-forma revenue rise in 2020, amid the "successful integration of Mr Green, which launched in two new regions". The pro-forma figure imagines Mr Green was integrated into the firm at the beginning of January 2019 to offer a "more meaningful comparator period".
William Hill agreed the SEK2.82 billion, about GBP242 million, takeover of Swedish peer Mr Green & Co AB in October 2018, completing the purchase early in 2019.
William Hill also outlined the 2020 fortunes of its US arm. US net revenue jumped 32% in 2020, "driven by strong growth online".
The company added: "Casinos remained closed or operated with restricted access for long periods and the major US sports leagues rescheduled their seasons in response to the pandemic. As part of our existing joint venture agreement, we absorbed the Caesars In-Person sportsbooks onto the William Hill platform."
William US went live in five new US states, helping to more than double fourth-quarter revenue.
Chief Executive Officer Ulrik Bengtsson said: "2020 was a year like no other. It tested our agility and flexibility and we delivered, keeping our customers and team safe, whilst materially improving our competitive position through product enhancements and geographical expansion. The offer received for the group recognises the substantial progress we have made as well as the opportunities and challenges ahead of us."
By Eric Cunha; ericcunha@alliancenews.com
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