The year was filled with challenges for William Hill’s online segment, but it was offset by a strong performance in the retail sector. The company saw a 52.7% increase in retail revenue, reaching £514.2m, thanks to a return to normal trading levels after the Covid-19 pandemic. However, the UK online business experienced a 19.0% decline in revenue totaling £509.1m. This was attributed to the reopening of retail stores and the implementation of enhanced customer safety measures in preparation for the government’s gambling reform white paper. William Hill’s international online business also suffered, with a 23.1% drop in revenue amounting to £212.0m due to regulatory measures and the company’s exit from the Dutch market.
Despite the overall decline in revenue, William Hill reported an increase in its adjusted earnings before interest, taxes, depreciation, or amortization (EBITDA), primarily driven by the recovery of the retail segment. The company reported a total operating loss of £31.0m in 2022 but still managed to announce a profit of £168.4m, largely influenced by a one-off foreign exchange gain.
In an effort to reduce costs, William Hill implemented various measures in 2022. While the cost of sales remained relatively stable at £383.7m, the company successfully reduced its marketing expenses by 30.5% to £151.1m. Additionally, operating expenses were lowered by 6.7% to £583.5m. However, exceptional costs rose from £99.4m to £148.7m, primarily due to the costs associated with the deal and increased legal expenses.
In July 2022, 888 completed the acquisition of William Hill’s non-US business for £1.95bn. Since then, the two companies have been working towards integrating their operations into a single entity. Plans are underway to migrate the business to a unified technology platform for content delivery, led by Satty Bhens, the chief technology and product officer at William Hill.
888 faced some difficulties after finalizing the deal. The rising interest rates made it challenging for the company to manage the debt taken on for the acquisition, prompting them to tap into the debt capital markets and secure €200m for acquisition debt financing in December 2022. In January, 888 faced regulatory issues and suspended its Middle Eastern VIP account while under investigation for non-compliance with anti-money laundering procedures. This incident resulted in the resignation of 888 CEO Itai Pazner. Consequently, 888’s share price plummeted by almost 70% from July 2022 to a low of £52 per share in late March 2023. However, recent news of former GVC executives investing in the business through their FS Group vehicle has sparked a resurgence in 888’s share price.
