William Hill operating profit down for Q1
Operator William Hill has reported a group operating profit year-on-year decrease of 19% for the first quarter of 2015.
The £16m group operating profit drop, which the UK operator has put down to the implementation of the new point of consumption tax (POCT), includes a 38% reduction in online operating profit, though online net revenue is up 9%.
Hills was negatively impacted by a £14m loss in the third week of January, which its CEO James Henderson admitted it is yet to have “made up the shortfall” from.
Operating profit for William Hill Australia has dropped 39%, while Hills’ US operations has seen a 1% net revenue increase.
Henderson said in a press release: “As expected, group operating profit was impacted by a £20m increase in gambling duties following the introduction of POCT in December 2014 and the increase in the MGD [machine games duty] rate in March 2015.
“However, we are well positioned to benefit as the UK online market evolves following the introduction of POCT, with our ongoing technology investments expected to benefit both product and customer experience and with a substantial marketing commitment.”
Net revenue from Hills’ retail division is down 2%, but group net revenue is up 1%.
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