| |
|
| Graph description |
Long description text |
| No. of employees |
| Retail |
93% |
| Online |
4% |
| Telephone |
3% |
|
| Net revenue % |
| Retail |
76% |
| Online |
21% |
| Telephone |
3% |
|
| Net revenue |
| +4% |
|
| 2007 |
933.6 |
| 2008 |
963.7 |
| 2009 |
997.9 |
Net revenue for Retail was lower because OTC amounts wagered declined as a result of the economic conditions. Telephone was impacted by the competitive position. However, William Hill Online's net revenue grew by 8% on a pro forma basis and by 63% compared with William Hill's standalone business.
|
| Operating profit (pre-exceptional) |
| -9% |
|
| Group KPI |
£m |
| 2007 |
286.7 |
| 2008 |
278.6 |
| 2009 |
253.0 |
Group operating profit declined as a result of the lower net revenue contributions from Retail and Telephone, partially offset by William Hill Online, and increased costs. This reflects the tough macro-economic environment.
|
| Earnings per share (basic, adjusted) |
| -35% |
|
| Group KPI |
p |
| 2007 |
33.4 |
| 2008 |
31.9 |
| 2009 |
20.6 |
The decline in EPS reflects a combination of the reduced operating profit and the increased number of shares in issue following the one-for-one rights issue. The number of average shares for 2009 was 641.3 million, compared with the adjusted number of 494.4 million in 2008.
|
| Average profit per LBO |
| -17% |
|
| Divisional KPI |
£ |
| 2007 |
100,174 |
| 2008 |
104,469 |
| 2009 |
86,476 |
Our Retail business delivered a robust performance in 2009 in the challenging economic environment. Average profit per LBO fell as the economy impacted amounts wagered OTC. However, cost control was strong with costs increasing by only 3%.
|
| Average gross win per machine per week |
| +6% |
|
| Divisional KPI |
£ |
| 2007 |
661 |
| 2008 |
716 |
| 2009 |
758 |
Machines have continued to perform strongly, benefiting from continued product innovation, staff training and in-store promotions. Further growth is expected in 2010 with the roll-out of the new 22-inch HD 'Storm' cabinets.
|
| OTC gross win margin |
| -0.6% points |
|
| Divisional KPI |
% |
| 2007 |
17.2 |
| 2008 |
18.3 |
| 2009 |
17.7 |
2009 was a turbulent year in terms of sporting results, from a 100-1 winner on the Grand National in April to losses on football in May and August as the leading Premier League clubs kept winning and there was a dearth of draws. In spite of these fluctuations, the OTC gross win margin returned to 17.7%, within the normal 17%-18%. The 2008 comparator was above average.
|
| UK gambling market by product |
| Product |
£bn |
| OTC |
2.8 |
| Lottery |
2.5 |
| Gaming machines |
1.9 |
| Online |
1.2 |
| Bingo |
0.9 |
| Casino |
0.8 |
| Sportsbook |
0.2 |
| Other |
0.3 |
Source: Gambling Commission Industry data 2008/9
|
| Split of UK LBOs by operator |
| William Hill |
25% |
| Ladbrokes |
22% |
| Coral |
18% |
| Betfred |
10% |
| Tote |
7% |
| Other |
18% |
Source: Gambling Commission Industry data 2008/9
|
| UK off-course betting gross win |
| Year |
£bn |
| 2003 |
1.61 |
| 2004 |
1.86 |
| 2005 |
1.87 |
| 2006 |
1.84 |
| 2007 |
1.80 |
| 2008 |
1.81 |
Source: H2GC
|
| UK gaming machines gross win |
| Year |
£m |
| 2003 |
405.3 |
| 2004 |
555.5 |
| 2005 |
656.7 |
| 2006 |
723.8 |
| 2007 |
794.0 |
| 2008 |
964.4 |
Source: H2GC
|
| The factors influencing a customer's choice of shop |
|
% |
| Pricing |
24 |
| Staff knowledge |
26 |
| Easy to bet with |
26 |
| Shop facilities |
28 |
| Range of bets |
32 |
| Location |
45 |
| Staff service |
55 |
|
| Split of Online revenues |
| Sportsbook |
21% |
| Casino |
62% |
| Poker |
10% |
| Bingo |
7% |
Following the Uniplay acquisition, gaming - particularly casino - has grown significantly as a proportion of net revenues. In addition, Sportsbook net revenues in 2009 were reduced by a weaker margin, which reduced its overall proportion of net revenues.
|
| European online gambling market by country |
| |
£m |
| UK |
1,382 |
| Germany |
595 |
| Sweden |
576 |
| Italy |
570 |
| Spain |
404 |
| France |
373 |
| Greece |
151 |
| Ireland |
150 |
Approximately 40% of William Hill Online's net revenues now come from outside the UK, predominantly from Europe. We are looking to build William Hill Online as an international brand and will focus on key territories in Europe in particular in 2010.
Source: H2GC
|
| New Online accounts by product |
| Sportsbook |
33% |
| Casino |
49% |
| Poker |
10% |
| Bingo |
8% |
Sportsbook continues to be a key recruiter of new customers, with the benefit of a lower cost per acquisition and a longer average customer lifetime. Sportsbook, casino and bingo all grew their number of new accounts substantially in 2009 but poker declined after the migration to Playtech's i-Poker network. Overall, new accounts increased by 665,000 or 28%.
|
| Online unique active players |
| |
1,289,000 |
| Divisional KPI |
No. |
| 2008 |
987,100 |
| 2009 |
1,289,000 |
The Uniplay acquisition expanded our customer based substantially in 2008 and we have increased it by a further 28% in 2009 through successful marketing campaigns.
|
| Online revenue per unique active player |
| £157.8 |
|
| Divisional KPI |
£ |
| 2008 |
190.6 |
| 2009 |
157.8 |
Customer yield was weaker across the online gambling industry in 2009 as the recession reduced customer spend. In spite of this weakness, our net revenue has grown by 8%.
|
| Sportsbook gross win margin |
| 6.6% |
|
| Divisional KPI |
% |
| 2008 |
7.5 |
| 2009 |
6.6 |
Weak in-play and horseracing margins impacted the Sportsbook gross win margin in 2009. The changes we have implemented, including automation and expansion of the product range, are already helping to improve margin performance.
|
| Telephone gross win margin |
| -1.5% points |
|
| Divisional KPI |
% |
| 2007 |
9.5 |
| 2008 |
7.3 |
| 2009 |
5.8 |
In 2009, our net revenue margin reduced by 150 basis points, primarily as a result of weakness in the horseracing margin as the economic climate is reducing the number of runners per race and increasing price competition at the racetracks where the starting price is set.
Source: H2GC
|
| Net revenue |
| -25% |
|
| Divisional KPI |
£m |
| 2007 |
53.0 |
| 2008 |
39.8 |
| 2009 |
29.7 |
Telephone net revenue has declined as offshore operators and betting exchanges have benefited from an uneven tax and regulatory playing field.
|
| Interest cover (bank covenant purposes) |
| 5.2 times |
|
| Group KPI |
times |
| 2007 |
5.2 |
| 2008 |
5.1 |
| 2009 |
5.2 |
Interest cover continues to be well ahead of debt covenant of interest cover greater than three times. Although earnings fell in 2009, interest costs also reduced as net debt was £419.5m lower at £602.6m.
|
| Effective tax rate |
| 24.5% |
|
| Group KPI |
% |
| 2007 |
25.2 |
| 2008 |
26.6 |
| 2009 |
24.5 |
The effective tax rate reduced in 2009 as a result of an increased proportion of profits coming from William Hill Online, which is headquartered in Gibraltar, and from its customers outside the UK.
|
| Changing debt profile |
| by group KPI in £m |
| As at 30 Dec 2008, £1.2bn bank facility and £250m bank facility. |
| As at 30 Jun 2009, £250m bank facility, £538.5m bank facility and £50m bank facility. |
| As at 29 Dec 2009, £538.5m bank facility and £300m bond. |
|
| Changing maturity profile |
| |
£m |
| Mar 2010 |
1200.0 * |
| Feb 2011 |
50.0 * |
| Jun 2011 |
250.0 * |
| Mar 2012 |
538.5 ** |
| Nov 2016 |
300.0 ** |
* Cancelled facilities
** Current facilities
|
| Disputes referred to IBAS |
| 394 |
|
| 2007 |
274.0 |
| 2008 |
306.0 |
| 2009 |
394.0 |
In 2009, 394 disputes were referred to IBAS. Although the number has increased, the percentage of cases found in the customers' favour is unchanged year-on-year at just 5%.
|
| Self-exclusions |
| Retail |
|
| 2007 |
1,563 |
| 2008 |
3,382 |
| 2009 |
4,488 |
| |
|
| Telephone/Online |
|
| 2007 |
1,826 |
| 2008 |
3,163 |
| 2009 |
2,810 |
|
| Long-term service awards in 2009 |
| Years |
Awards |
| 40 |
6 |
| 30 |
53 |
| 25 |
65 |
| 20 |
121 |
| 10 |
271 |
Interest cover continues to be well ahead of debt covenant of interest cover greater than three times. Although earnings fell in 2009, interest costs also reduced as net debt was £419.5m lower at £602.6m.
|
| Composition of workforce % |
| Female |
57% |
| Male |
43% |
| |
|
| Full-time |
76% |
| Part-time |
24% |
| |
|
| Caucasian |
83% |
| Ethnic minority |
17% |
|
| UK horseracing levy |
| £18.2m |
|
| |
£ |
| 2007 |
26.6m |
| 2008 |
23.9m |
| 2009 |
18.2m |
The British Horseracing Levy Board uses the levy to fund prize money, integrity services and racecourses.
|
| Matching donations supporting employee activities |
| £54,297 |
|
| 2007 |
25.4 |
| 2008 |
29.4 |
| 2009 |
54.3 |
During 2009, the nominated charities of 91 staff benefited from the matching scheme with staff endeavours including marathon running and parachute jumps.
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