William Hill's U.S. business posts 150 percent rise in net revenues

William Hill PLC on Friday said its Las Vegas-based subsidiary had a strong fourth quarter, with amounts wagered up 34 percent and net revenue up more than 150 percent over the fourth quarter of 2012.

The company, William Hill U.S., also reported an 8.3 percent gross win margin, a nice recovery from the 4.2 percent figure in 2012. In a trading statement, William Hill did not release revenue figures for its U.S. operations.

William Hill CEO Ralph Topping said he was pleased with the turnaround in profitability of “our U.S. business in our first full year of ownership.”

In Nevada, William Hill U.S. operates sports books, mobile betting apps and more than 40 mobile sports deposit hotspots in bars and taverns. The so-called hotspots allow customers to fund their mobile accounts and get updated lines on games.

William Hill U.S. also handles risk management for the Delaware lottery. The company was created in June 2012 when William Hill spent $49 million to acquire American Wagering Inc., Brandywine Bookmaking LLC and Club Cal Neva’s sports book operations.

William Hill reported the full year estimate for earnings before interest, tax, depreciation and amortization is $548.06 million. The London-based company’s success worldwide has been linked to its online and mobile gaming business.

“Q4 proved a strong end to the year as we enjoyed momentum in sports book with 38 percent more wagered in the fourth quarter… than last year,” Topping said. “This demonstrates our competitive edge in online.”

Topping said William Hill made “good progress in key initiative” in the fourth quarter, including improving its mobile game offerings. William Hill reported online net revenue jumped 14 percent in fourth quarter, while its retail net revenue grew 13 percent.

The bookmaker will announce its final 2013 earnings on Feb. 28.

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