William Hill has reiterated its goal of doubling its profits over the next four years – despite almost simultaneously posting a loss of £721m for 2018.
The embattled British bookmaker is betting big on the unfolding of the US, where its revenues grew 38 percent over the last 12 months. But in the face of regulatory change in the UK it also plans to move towards revenues from a larger number of lower stake recreational players.
Hills says its estimates for the US sports betting market are between $5bn and $19bn by 2023 – depending on how quickly states regulate. It also plans to capture 15 percent of the market by that time, thereby growing its US ebitda from $46m last year, to over $300m in 2023.
“This is a major new market opportunity that William Hill is very well placed to pursue as we are the US’s leading sports betting company,” said CEO Philip Bowcock. “We aim to maintain our market leadership and intend to enter every state that regulates sports betting.”
Analysts are Regulus Partners described the new revenues that William Hill is aiming for, as “much tougher to deliver operationally” than FOBT revenues, which were “very easy to generate operationally (requiring next to no skill).”
“William Hill has improved, but whether it has improved enough remains to be seen.”