William Hill Limited Reports Mixed Results for 2022, Boosted by Betting Shop Recovery and Forex Gains

William Hill Limited, a leading UK-based gambling business, has released its annual financial report for 2022. The year was largely flat for the corporation, with just minor revenue changes across its many segments. The strength of its retail segment, fueled by customer returns to betting shops, proved critical in offsetting decreases in online activities. Furthermore, foreign exchange gains considerably contributed to the company’s profitability, assisting it in reversing losses from the previous year.

William Hill earned £1.2353 billion ($1.5688 billion) in net revenue during the 52-week period ending December 27, 2022. Despite a 0.5% reduction from the previous year’s total of £1.2414 billion ($1.5766 billion), the corporation had a remarkable rebound in its Retail division. With no lockdown limitations in effect during the year, net revenue from betting shops increased by 53% to £514.2 million ($653 million), up from £336.8 million ($427.74 million) the previous year.

Despite a strong performance in the retail sector, William Hill experienced challenges in its UK Online and International operations. Net revenue from online activities in the United Kingdom fell by 19%, to £509.1 million ($646.6 million), from £628.6 million ($798.3 million) in 2021. Customers returning to physical betting shops and the deployment of increased customer safety measures in advance of the impending Gambling Act 2005 revision can be ascribed to this reduction. Similarly, the International business saw a 23% decline, earning £212 million ($269.2 million) in 2021 versus £276 million ($350.5 million). This reduction was influenced by regulatory measures as well as the company’s exit from the Netherlands.

William Hill reported Adjusted EBITDA of £214.8 million ($272.8 million) for the quarter, a 32% increase from £161.7 million ($205.4 million) in 2021. Retail gave £95.7 million ($121.5 million), UK Online contributed £112.2 million ($142.5 million), and International contributed £33.1 million ($42 million).

While exceptional items and adjustments resulted in a loss of £148.7 million ($188.8 million) as a result of deal-related expenditures and increased legal provisions, the company’s operating loss fell by 52.7% to £31 million ($39.4 million). This enhancement can be due to lower marketing costs.

William Hill’s profitability was notably influenced by a one-time foreign exchange gain of £198.8 million ($252.5 million) from financing items, which resulted from exchange discrepancies on the company’s debt to its parent. As a result, the company posted a profit after tax of £168.4 million ($213.9 million), effectively reversing the previous year’s deficit of £58.9 million ($74.8 million).

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