William Hill PLC Final results 2020 Company Announcement - FT. com

Company Announcements

William Hill PLC (LSE: WMH) (hereinafter "William Hill" or "Group") announced the final achievements of 52 weeks (hereinafter "period" or "2020") ending December 29, 2020. The comparative value is about 52 weeks ending on December 31, 2019.

Legal achievement 1

After adjustment 1

Profit before tax / (loss) 2

Rable per share/(loss) (EPS) (p) 3

Dividend per share (p) 4

Strategic / management points

-I ended up a difficult year and turned the momentum of the digital business into conviction

-Strategically focus on customers, teams, and execution and greatly improve competitiveness

-My promotion of global diversification: 36 % of group pure income from outside the UK (2019: 24 %).

-The pure income of 16%: Cavid 19 has been interrupted by live sporting events, closing and restrictions in retail and casinos, but some offset online gaming.

-Online is 9%pure income:

§ International increases pure income 16%and expands in the new area

§ The UK Online had a successful platform and product in the second half, and recorded a pure income of £ 532 million.

-The retail department responded agile and tough to pandemic restrictions. Pure income decreased by 51 %, down 30 % yea r-o n-year.

-The United States expanded its presence nationwide through the lea d-leading partnership, maintained a solid position in the market, and increased pure income by 32 %.

-The operating profit after adjustment decreased 61%to £ 61%, 2 million pounds: Sports calendar, retail, and the casino closure affected, but the digital channels were partly offset.

-Ta x-old statutory profit 51 million pounds: VAT collection £ 280 million, retail costs without cash expenditures, £ 125 million, costs related to cash offer from Caesters Entertainment Inc. (Caesters) Exceeded.

-Increase the balance sheet by increasing capital and liquidity conservation measures

-The cautious cash maintenance: Cancellation of final dividends and employee bonuses. Abandoned contracts, disciplined cost management

-Pure interest-bearing liabilities/eBitDA 6 0, 8 times: The target of £ 218. 6 million pure income and the success of the added value-added claim is less than 1-2 times.

-Payment and customer protection

-Remarkable risks are still in Europe and the UK. The stakeholder commits a fair and balanced regulation ecosystem.

-The enhanced guardrail and quick digital compliance have greatly improved the protection of players

-Sesisers propose a 272 pesos per share by cash (hereinafter referred to as "book acquisition").

-It reflects the attractive position of William Hill Brand, the great progress, and the lon g-term growth opportunity that the group has achieved in the past 18 months.

-William Hill's equity valuation of about 2. 9 billion pounds is due to the possibility of investment necessary to maximize business opportunities in the United States, the possibility of restrictions in the UK and Europe, and the lon g-term impact of Cobit 19 pandemic. It recognizes the accompanying uncertainty.

Urlik Bentson's CEO (CEO) proved the traction created by our strategic focus, which commented as follows: customer, team, execution. The highest priority on the protection and safety of employees and customers, and the employees did more.

"In 2020, we will firmly set strategies, diversify geographical footprints, expand the team's abilities, and reconstruct technology. Incorporating our own elements into the platform architecture, more quick products. We will provide constant new features, such as experiences, improvement of navigation, and strengthening protection, to customers around the world.

"In the second half of the year, it is clearly proven that our strategy is imposing. In the UK, the competitiveness of online services has been greatly strengthened in both gaming and sports fields, and mult i-channel products. Retailed was promising early, but when the store was resumed, it returned to the level before the acquisition.

"In particular, in consideration of regulations in Germany and temporary regulations in other areas, our products and investment in our products have generated clear profits. Agreement on the acquisition of Colombia's Alfabet S. A. S. , Acquiring a license in Argentina can further expect growth in Latin America.

"The United States has performed well at the end of the year, gaining 19 % of market share and achieving a surplus financial results. Our partnership has increased the recognition of the brand, expands the product lineup, and is new with integrated technology. The prompt business development is now possible -The attractive positions of William Hill Brands, the great progress that the group achieved in the past 18 months, and the lon g-term growth opportunity. There is.

"The United States has performed well at the end of the year, gaining 19 % of market share and achieving a surplus financial results. Our partnership has increased the recognition of the brand, expands the product lineup, and is new with integrated technology. It has become a quick business development in the country-The attractive position of William Hill Brand, and the great progress that has been achieved in the past 18 months.

"As William Hill takes a new step, we will continue to prioritize the protection of our customers. Our customers are safe in the regulated ecosystem, secure tax bases, and industry. Protect.

1. The statutory and afte r-adjustment performance includes the achievements of Green after the acquisition completed in January 2019.

2. The operating profit and loss after adjustment is an exceptional item and other specific adjustment items from the profit and loss of interest rates and tax. Details of the pos t-adjustment indicators are described in Note 3 of the financial statements.

3. Basic EPS is based on an average of 967. 4 million shares in 2020, and an average of 873 million shares in 2019 after the issuance of 174. 9 million shares due to shares in June 2020. 。 After adjustment, EPS is based on profit after the adjustment.

4. The final dividend of 2019 was canceled in 2020.

5. If the results (LFL) equivalent to LFL are reported, this is a comparison of the transaction record of the store that was opened in 2020 (with limited COVID-19). It is. In 2020, when all stores were closed by COVID-19, the comparison target for 2019 is included. Since the store was resumed in step from the 24th week, the comparison was only in the first complete week of the transaction (daily from the 24th to 26th weeks).

6. Pure interes t-bearing debt for detection purposes and eBitDa for detection purposes are no n-store indicators. The basis for calculation is as described in the Financial Table 25 of the 2020 securities report.

7. 7. When mentioning the state, including Washington D. C.

8. 8. When mentioning US gambling or betting, it is based on the total US dollar bet on direct and indirect channels.

9. If the professional performance has been reported, it is assumed that Green was established in the group in early January 2019 to provide a more meaningful comparison period.

10. We are currently called William Hill US, including the expansion projects in the United States and the United States.

11. "As William Hill takes a new step, we will continue to prioritize the protection of our customers. Our customers are safe in the regulated ecosystem and tax bases. Secure the industry.

1. The statutory and afte r-adjustment performance includes the achievements of Green after the acquisition completed in January 2019.

4. The final dividend of 2019 was canceled in 2020.

7. 7. When mentioning the state, including Washington D. C.

8. 8. When mentioning US gambling or betting, it is based on the total US dollar bet on direct and indirect channels.

9. If the professional performance has been reported, it is assumed that Green was established in the group in early January 2019 to provide a more meaningful comparison period.

10. We are currently called William Hill US, including the expansion projects in the United States and the United States.

11. "As William Hill takes a new step, we will continue to prioritize customer protection. Our customers are safe in the regulated ecosystem and secure tax bases. , Protect the industry.

1. The statutory and afte r-adjustment performance includes the achievements of Green after the acquisition completed in January 2019.

4. The final dividend of 2019 was canceled in 2020.

7. 7. When mentioning the state, including Washington D. C.

8. 8. When mentioning US gambling or betting, it is based on the total US dollar bet on direct and indirect channels.

9. If the professional performance has been reported, it is assumed that Green was established in the group in early January 2019 to provide a more meaningful comparison period.

10. We are currently called William Hill US, including the expansion projects in the United States and the United States.

11.

12. EUROPEAN GAMING AND Betting Association and H2 Gambling Capital, www. H2Gc. Com.

OAM: Additional regulation information

William Hillley: 213800MDW

Louise Turne r-Smith, Investor Relations Director

Alison Call, Corporate Communication Director

Telephone: +44 (0) 20 7612 3251

Telephone: +44 (0) 20 7612 3233

Andrew Porter / Samantha Cine

Telephone: +44 (0) 20 7404 5959

About William Hill

William Hill PLC is one of the world's leading betting and gaming companies and has more than 12, 000 employees. It originated in the UK, established in 1934 and listed on the London Stock Exchange. Approximately thre e-thirds of the annual sales of 1. 3 billion pounds are from the UK, which is one of the leading companies in the betting and gaming services. The European online business in William Hill has a base in Gibraltar and Malta, and has acquired online licensing in 13 countries after the acquisition of MR Green & Amp; Co AB in January 2019. In 2012, he established William Hill in Nevada, mainly for individuals and mobile businesses, and became the largest sports betting business in the United States. In May 2018, the Supreme Supreme Court has grown as the Federal Supreme Court has made an unconstitutional ruling of sports betting sponsored by the State, and will continue to expand as new states regulate sports betting. Currently, Coloradado, Delaware, Illinois, Indiana, Iowa, Mishigan, Mishigan, Nevada, Nevada, New Mexico, New Jersey, Pennsylvania, Lord Island, Virginia, Washington D. C. It is developing a business in 15 states. Caesters Entertainment currently owns 20%of Caesters Entertainment shares.

Precautions about the descriptions of the future

This presentation includes a description that could be regarded as a "description on future outlook" or "description on future outlook". These descriptions about the future outlook are "convinced", "estimate", "expect", "predict", "intentional", "plan", "goal", "goal", Terminations related to future outlooks such as "may", "plan", "potential", "possibly", "should", or in each case, those denials and other deformations, Alternatively, you can identify it by using the same term. These descriptions about the future outlook include all items that are not historic facts. These descriptions on future forecasts are described in various parts of the information incorporated as a reference of this financial statement and this financial results, especially in William Hill's business results, financial status, fluidity, prospects, growth, strategy, and dividends. Includes policies, as well as the intentions, beliefs, or current expectations of Director, William Hill or the Group in the industry in which William Hill is doing business. Due to its nature, the description of future forecasts may depend on the event that may or may not be generated in the future, and may exceed William Hill's management and predictive ability. Includes risk and uncertainty. The description of future forecasts does not guarantee future performance. The actual management results, financial status, fluidity, dividend policies, etc. may be changed without notice.

Another unprecedented presentation includes a description that could be regarded as a "description of future outlook" or "description on future outlook". These descriptions about the future outlook are "convinced", "estimate", "expect", "predict", "intentional", "plan", "goal", "goal", Terminations related to future outlooks such as "may", "plan", "potential", "possibly", "should", or in each case, those denials and other deformations, Alternatively, you can identify it by using the same term. These descriptions about the future outlook include all items that are not historic facts. These descriptions on future forecasts are described in various parts of the information incorporated as a reference of this financial statement and this financial results, especially in William Hill's business results, financial status, fluidity, prospects, growth, strategy, and dividends. Includes policies, as well as the intentions, beliefs, or current expectations of Director, William Hill or the Group in the industry in which William Hill is doing business. Due to its nature, the description of future forecasts may depend on the event that may or may not be generated in the future, and may exceed William Hill's management and predictive ability. Includes risk and uncertainty. The description of future forecasts does not guarantee future performance. The actual management results, financial status, fluidity, dividend policies, etc. may be changed without notice.

An unless a on e-year presentation includes a description that could be regarded as a "description of future outlook" or "description on future outlook". These descriptions about the future outlook are "convinced", "estimate", "expect", "predict", "intentional", "plan", "goal", "goal", Terminations related to future outlooks such as "may", "plan", "potential", "possibly", "should", or in each case, those denials and other deformations, Alternatively, you can identify it by using the same term. These descriptions about the future outlook include all items that are not historic facts. These descriptions on future forecasts are described in various parts of the information incorporated as a reference of this financial statement and this financial results, especially in William Hill's business results, financial status, fluidity, prospects, growth, strategy, and dividends. Includes policies, as well as the intentions, beliefs, or current expectations of Director, William Hill or the Group in the industry in which William Hill is doing business. Due to its nature, the description of future forecasts may depend on the event that may or may not be generated in the future, and may exceed William Hill's management and predictive abilities. Includes risk and uncertainty. The description of future forecasts does not guarantee future performance. The actual management results, financial status, fluidity, dividend policies, etc. may be changed without notice.

A unique year

In order to realize international diversity and the ambition of becoming a digital leader, we are doing our utmost to enhance William Hill's lon g-term competitiveness. To that end, we are culturally focusing on the three important strategic priority items that are called "customer", "team", and "execution":

-The winning with the customer

-Equate the team to build appropriate abilities and increase the engagement and collaboration.

-The commitment is executed by utilizing the assets of the global platform, improving the efficiency of operations, and achieving sustainable and profitable profit growth.

The strategic focus of customers, teams, and execution has moved significantly for 2020, improving digital abilities, and as a result, accelerating market launch speed. We have expanded international footprints, and 36 % of the pure income of the group will be produced outside the UK (2019: 24 %), and more than tw o-thirds of the total pure income are from digital channels. It is being done.

The trend of COVID-19 affects almost all aspects of our business and life in 2020, and we are currently providing digital-accessible products, working remotely and maintaining productivity. I live and work in a world where my ability to do is more important than ever.

We have more business and leisure activities online, with systematic and structural changes in customer behavior, which surpass pandemic (global trends), and expand our business opportunities. I expect it. Our products are suitable for digital distribution, and by increasing the speed of product development and continuously improving their abilities, William Hill has a system to succeed.

Realization of true progress

This year, William Hill has grown remarkably in online and the United States, and has benefited from the change we are doing. The Group responded quickly to the COVID-19 pandemic, demonstrated innovation and resilience, generated operating income of £ 57. 3 million (2019: 2019: 147 million), and has about 2. 9 billion pounds. Acquired an acquisition proposal. In order to realize the ambitions of becoming an international diversity and digital leaders, we are all working to increase William Hill's lon g-term competitiveness. To that end, we are culturally focusing on the three important strategic priority items that are called "customer", "team", and "execution":

-The winning with the customer

-Equate the team to build appropriate abilities and increase the engagement and collaboration.

-The commitment is executed by utilizing the assets of the global platform, improving the efficiency of operations, and achieving sustainable and profitable profit growth.

We have more business and leisure activities online, with systematic and structural changes in customer behavior, surpassing pandemics (global trends), and our business opportunities are expanding. I expect it. Our products are suitable for digital distribution, and by increasing the speed of product development and continuously improving their abilities, William Hill has a system to succeed.

Realization of true progress

This year, William Hill has grown remarkably in online and the United States, and has benefited from the change we are doing. The Group responded quickly to the COVID-19 pandemic, demonstrated innovation and resilience, generated operating income of £ 57. 3 million (2019: 2019: 147 million), and has about 2. 9 billion pounds. Acquired an acquisition proposal. In order to realize international diversity and the ambition of becoming a digital leader, we are doing our utmost to enhance William Hill's lon g-term competitiveness. To that end, we are culturally focusing on the three important strategic priority items that are called "customer", "team", and "execution":

-The winning with the customer

-Equate the team to build appropriate abilities and increase the engagement and collaboration.

-The commitment is executed by utilizing the assets of the global platform, improving the efficiency of operations, and achieving sustainable and profitable profit growth.

Realization of true progress

We continue to build our own technical platforms, develop steadily product enhancements, and this year's UK's online customer Pro Motor Score (NPS) has not been seen since the introduction of customer due to customer du data in 2018. Has reached. International NPS NPS of both William Hill and Mr. Green Brands has maintained a high reputation. Retails have increased customer NPS by 12 % by improving customer service and retailed products, especially 26 % (2019: 2019: 2019: 2019), which accounted for the quality of our own sel f-service betting terminal (SSBT). did.

The International Online has been performing well throughout the year, with Sweden, Denmark, and Italy's contributions, and pure income has been up to 16%. Temporary regulations were implemented in several markets to protect the player during the lockout period related to the pandemic (global trendy disease), extending the amount of payment and advertising regulations. In Germany, a provisional regulatory system was introduced on October 15, 2020, with many changes, including deposit restrictions. These new regulations are expected to reduce EBITDA after £ 1021.

The international department has continued to pursue the opportunity to expand business. The business was expanded in Latin America, and in December 2020, the Colombian licensed business operator, Betalfa. co. The majority of the ALFABET S. A. S. shares specified. In January, he obtained approval in Buenos Aires, Argentina.

Despite the live sports in the second quarter of the UK online, pure income increased by 5%. Continuous platforms and products have enhanced better product experiences and marketing efficiency, and in the fourth quarter, pure income growth has gained momentum.

The reorganization of a British retail business in 2019 has made it possible to respond quickly to the surroundings of countries and regions. As a result, the pure and small sales were decreased by 30 % based on the same period of the previous year (LFL). With the expectation that customer game behavior would change systematically, 119 stores were closed after the first rockdown in the UK. The Company continues to build its own technical platform, develop steadily product enhancements, and this year's UK's online customer promoter score (NPS) has been seen since the introduction of customer due to the strengthening of the company in 2018. We reached the level that we did not. International NPS NPS of both William Hill and Mr. Green Brands has maintained a high reputation. Retails have increased customer NPS by 12 % by improving customer service and retailed products, especially 26 % (2019: 2019: 2019: 2019), which accounted for the quality of our own sel f-service betting terminal (SSBT). did.

The reorganization of a British retail business in 2019 has made it possible to respond quickly to the surroundings of countries and regions. As a result, the pure and small sales were decreased by 30 % based on the same period of the previous year (LFL). With the expectation that customer game behavior would change systematically, 119 stores were closed after the first rockdown in the UK. We continue to build our own technical platforms, develop steadily product enhancements, and this year's UK's online customer Pro Motor Score (NPS) has not been seen since the introduction of customer due to customer du data in 2018. Has reached. International NPS NPS of both William Hill and Mr. Green Brands has maintained a high reputation. Retails have increased customer NPS by 12 % by improving customer service and retailed products, especially 26 % (2019: 2019: 2019: 2019), which accounted for the quality of our own sel f-service betting terminal (SSBT). did.

With more states regulating sports betting and Icasino, we made significant progress in our ambitions to expand in the US. In 2020, we opened new casinos in seven of seven states, accelerated the development and deployment of our proprietary technology platform, expanded our mobile presence, and enabled us to launch Icasino in New Jersey. Handle (wagers) increased 28% online 8, and while casinos were hit by various pandemic closures and Covid-19 restrictions, in-person handle only decreased 10%, demonstrating the popularity and resilience of the in-person experience. Gross win margins benefited from favorable performance, with net revenue increasing 32%.

The US business continued to leverage its partnership model and achieved a number of strategic milestones. In February 2020, the company agreed to a new partnership with CBS Sports, making William Hill the exclusive provider of sportsbook and betting data across all digital platforms. In July, Eldorado Resorts Inc. completed its acquisition of Caesars Entertainment, Inc., absorbing Caesars' retail sportsbook business into the William Hill platform. In August, we expanded our footprint in the iconic Las Vegas film industry with the acquisition of CG Technology. In September, we further expanded our digital and media presence in ESPN through a co-exclusive agreement with our US partner Caesars. ESPN and CBS Sports are the leading media brands in US sports, and these partnerships will provide cost-effective access to tens of millions of sports fans and increase awareness of the William Hill brand in the US.

The global pandemic has also impacted US casinos, with many casinos closed for extended periods, live sports suspended, and NFL, NBA, MLB and NHL seasons scaled back and rebuilt. We made the timely decision to make the most of our time and change our focus to accelerate the growth of our market-leading platform, Liberty. This has enabled us to go live in new states quickly, launching mobile in five new states in the second half of the year and two more in Q1 2021. As we gain new reach and new states regulate sports betting and iCasino, we are well positioned for the launch of Swift and are clearly benefiting from our expanding relationship with Caesars.

While the Group has made significant progress on many fronts, as detailed here, it also endured significant disruptions to personal experiences in the UK and the US during 2020. In recognition of this, the Group has taken a range of measures to reduce costs and protect employees:

- Suspended all salary increases and bonuses and cancelled 2020 Performance Share Plan awards.

-The winning with the customer

-Equate the team to build appropriate abilities and increase the engagement and collaboration.

While our UK and US teams responded with flexibility and innovation to keep our customers safe and playing in person, the impact of the pandemic Covid-19 reduced adjusted operating profit to £57. 3 million (2019: £147 million).

Realization of true progress

In addition to the measures already mentioned, we took steps to protect our cash flow by reducing costs and cancelling our final dividend. We strengthened our balance sheet by agreeing covenants with our lenders and facilitating the repayment of our £203 million 2020 bonds in June.

During the year, we future-proofed our balance sheet to support our growth ambitions and ensured that we had the funds to fund the expansion of our team capacity. We raised net proceeds of £218. 6 million from the share offering in June and successfully completed our VAT refund claim, allowing us to receive net proceeds of £208. 3 million in the second half of 2020. As a result, despite a one-time decline in net revenue and EBITDA due to COVID-19, we ended the year with net debt/EBITDA at 0. 8x, below our target range of 1-2x, putting us in a strong position to take advantage of opportunities in 2021.

Operational efficiencies that drive new business opportunities

Our focus is not just on growing our business, but also on reinventing our productivity and processes to capitalize on the benefits that come with scale and convergence. We will expand our UK market share by integrating our UK online and retail businesses, with one view of the UK customer, and one team serving them towards one goal. Early indicators from this integration are promising, both operationally and revenue-wise, and in leveraging our luxury systems.

Our new Chief Executive, Stephen Parry, is leading a program to improve operational efficiency and further automate customer-facing and internal processes. By implementing several cloud-based solutions, we are automating and streamlining processes, making our response times to customers faster and more accurate. We are also building new customer interaction capabilities to make it easier to communicate with customers and provide them with more personalized services and products.

Caring for our team

In 2019, we committed to developing our organizational capabilities, building our digital team, and driving engagement across our teams. To realise this ambition, we have revitalised our senior leadership team and improved the end-to-end employee experience by attracting and retaining talent. A recent employee loyalty survey showed a 25-point increase in employee NP based on 90% engagement, a sure sign of our success.

The global pandemic has tested us all. We have used this experience to take our culture a step further by listening to and acting on feedback from our colleagues, giving our employees a greater sense of empowerment and leveraging our trust-based culture. We acted quickly to support furloughed colleagues, increasing pay to 100% and introducing an award-winning benefits plan.

All of our values are based on the belief that everyone can grow and succeed with the growing mind, putting customers at the center of all actions. Currently, we are a fas t-paced, barrie r-free organization that we want to be involved in and want to be here. To further develop this, we have introduced three programs this year.

-The balance is a flexible way of working, so that employees can well balance their work, life. We create a highly reliable corporate culture linked to values so that employees can work flexibly in their work styles.

-Build is an initiative that adds skills and abilities to recognize William Hill as a betting and gaming company that enables individual growth and development.

-Belonging is a new identity for diversity and inclusion. We are aiming to congratulate us and achieve the entire business culture shift to unite us. We hope that at all levels of business, employees will feel, represent, and respect them.

William Hill ranked 150th out of 850, ranking 132nd, ranking highest among gambling operators.

Before the operation under the new owner, we are sensitive to the uncertainty that can occur for our team. Therefore, we have formulated a comprehensive communication program and increased the update frequency. In addition, as part of the transaction, the Board of Directors secured a certain concession to colleagues. According to the results of the engagement survey, most colleagues feel that they have gained enough information about transactions with Caesers and concentrate on the normal business management.

Enhancement of technology platform

This year, it was effectively used to accelerate the convergence of its own technology platform to achieve the scale benefits of the entire business. In order to achieve the ambition of leading the market with personalization of performance and application, we regularly enhance the functions of new products and transfer platform architectures to AWS (Amazon Web Service) cloud computing. 。 More prompt innovations realized by improving the efficiency of platforms and teams, major customers such as login to payment, customer service, and withdrawal navigation, leading the market, inducing customers in a quick and intuitive way. It will be possible.

-Equate the team to build appropriate abilities and increase the engagement and collaboration.

Realization of true progress

Protecting Our Customers

We achieved this progress whilst strengthening rigorous player security measures across the group, implementing the credit card ban and many other measures introduced in the UK over the past year. Many European regulators imposed a range of temporary measures to protect customers during the lockout period, including advertising restrictions and deposit limits. We tested new affordability measures, implemented protective messaging and increased our customers' online interactions, whilst encouraging all players to stay in control by taking "time-outs" and setting deposit and time limits.

Through 2020, we were reminded of the risk of changing regulations in Europe and the UK. We continue to be involved with the British government, attended the House of Interview Committee in February 2020, and has been involved frequently since then. In addition, it continues to have regular dialogue with the gambling committee and the Betting & Gaming Council (BGC), an industry organization, promoting the review of the British gambling law, protecting customers, protecting tax bases, and protecting the industry. We welcomed the new regulation framework.

In order to protect many people who enjoy sports betting and gambling, it is essential to achieve this optimal balance. Recently, in countries where gambling regulations have been overly enhanced, channeling (use by regulatory target operators) has decreased, and customers are looking for businesses that are not regulated by customers who cannot receive any protection and do not get tax revenue. It has become. In the UK, untreated gambling sites have been visited about 27 million times in 2011 and have not been approved in the past 12 months. It doubled to 4, 5 % and recorded a bet of £ 2. 8 billion. In addition, only 73. 5%of channelization in Europe in 2019 will play without being protected by more than on e-quarter players. Players' safety is always one of our top priority, and we continue to cooperate with the government and regulatory authorities to find a framework for a fair and balanced regulation.

William Hill's new focus on lon g-term competitiveness is fruitful with competitive products, smart retailers, and dedicated talented teams. Throughout 2020, we were reminded of the risk of changing regulations in Europe and the UK. We continue to be involved with the British government, attended the House of Interview Committee in February 2020, and has been involved frequently since then. In addition, it continues to have regular dialogue with the gambling committee and the Betting & Gaming Council (BGC), an industry organization, promoting the review of the British gambling law, protecting customers, protecting tax bases, and protecting the industry. We welcomed the new regulation framework.

William Hill's new focus on lon g-term competitiveness is fruitful with competitive products, smart retailers, and dedicated talented teams. Through 2020, we were reminded of the risk of changing regulations in Europe and the UK. We continue to be involved with the British government, attended the House of Interview Committee in February 2020, and has been involved frequently since then. In addition, it continues to have regular dialogue with the gambling committee and the Betting & Gaming Council (BGC), an industry organization, promoting the review of the British gambling law, protecting customers, protecting tax bases, and protecting the industry. We welcomed the new regulation framework.

William Hill's new focus on lon g-term competitiveness is fruitful with competitive products, smart retailers, and dedicated talented teams.

We recognize that some routes will remain in place in 2021. We expect that the Covid-19 pandemic will continue to impact the economic health of the UK road and impact the ability of casinos and retailers in the US to fully open. We are also mindful of the ever-changing regulatory landscape in the UK and abroad, and will continue to closely monitor developments and act responsibly. As we achieve our ambitions to accelerate growth and diversify internationally, we recognize that we have a responsibility to ensure that the products and services we offer allow our customers to play safely. The gambling review was launched by the UK government in December 2020, and we look forward to working with the UK government to advance an evidence-based regulatory framework. We are committed to working with all stakeholders to create partnerships, solutions and policies to build a long-term, sustainable betting and gaming ecosystem that keeps players safe.

Nevertheless, the momentum built at the end of the year by our customers, team and strategy execution priorities continued in the first quarter of 2021. In the U. S. and online, we continued to benefit from product upgrades and proprietary platform development in 2020, with the number of broadcasters during the Super Bowl nearly doubling compared to last year.

Looking ahead, 2021 will inevitably bring significant changes within the team. Caesars now expects the remaining approvals required by the relevant gaming authorities in the U. S. to be received in time to complete the acquisition early in the second quarter of 2021, or as early as March 2021. However, our strategic priorities of customers, team and execution remain on track, and we are focused on business as usual. Today, our broad internal capabilities and external opportunities are aligned, and the William Hill brand has great potential and, under new ownership, is well poised for its future.

The following segmental performance commentary highlights adjusted results, which reflect the basis reported in the internal and segmental analysis. A discussion of adjusted results, including a reconciliation to statutory results, is provided in Note 3 to the financial statements.

The discussion below relates to the 52 weeks ending December 29, 2020, unless otherwise noted, with comparisons to the 52 weeks ending December 31, 2019.

Online 9 (61 of Group revenue)

Sports betting amounts are

Win rate

International net revenue

Sports net revenue

Gaming net revenue

Online net revenue

Adjusted operating profit 2

The shift towards online sports betting and gaming is undeniable. Only 20% of all gaming worldwide is conducted online, and digital penetration remains relatively low. Restrictions imposed on retail formats in 2020 prompted structural change, with global customers accelerating their use of digital channels in 2020, up from 19. 14% the previous year.

To succeed in today's global gaming market, operators must strengthen their customer protection tools and deliver competitive customer service. Our strategy to drive digital capabilities is beginning to bear fruit with steady product and platform upgrades, with momentum building as the year unfolds.

This is the first full year of operating both William Hill and Mr Green brands from Hub Malta, enabling further expansion into new territories as we continue to diversify our products, brands and geographic exposure. In 2020, 37% of online revenues were generated outside the UK (2019: 35%), while legal net revenues increased by 9% (7% pro forma 9).

Regulatory and legal situation

In 2020, both the UK and international businesses faced extensive regulatory pressures. Some were temporary, implemented in response to the Covid-19 pandemic, while others were structural. Temporary restrictions were implemented in Sweden, Spain, Italy and Latvia during the first wave of lockdowns, and online credit card use was permanently banned in the UK.

In October, Germany introduced complex measures on gambling ahead of the conclusion of the interstate treaty in 2021. Several measures were implemented, including a €1. 000 monthly deposit limit and the removal of live casino betting. As a result of these measures, we expect fourth quarter net revenues in Germany to fall by 30% and EBITDA contribution in 2021 to fall by £10 million after mitigation.

We implemented strict customer protection protocols in the U. S. and international markets to comply with all regulatory requirements and ensure player safety, for example by implementing protective messaging and increasing safer gaming interactions.

UK Building Momentum

UK Online performance was driven by several strategic technology developments that have led to a fundamental structural change in product competitiveness. We accelerated the rollout of product enhancements, including the development of our smart data platform and the release of a new sports betting front end, a new betting card and a refresh of our game suite. This has resulted in improved marketing efficiency and a faster and more personalized user experience for our customers.

We started the year well, growing 7% in the first 10 weeks before the first lockdown in the UK and the suspension of live sports broadcasts. The second quarter was significantly impacted by the lack of live sports broadcasts, but the second half was driven by a full sports calendar, new product launches and good sports results, leading to a record high of 5% year-on-year growth in UK Online net revenue to £503. 2 million. We continued to focus our marketing strategy on business results and reduced spending by 2% as technological advancements enabled carefully targeted budget execution. As a result, average revenue per user (ARPU) increased by 6%, despite a 1% decrease in unique activity.

Driven by international expansion

Online International entered 2020 with confidence, with new product launches well underway. With the full integration of the Mr. Green acquisition completed earlier this year, the International team, with its broad range of global expertise, further consolidated its integration in its Malta hub. Continuing platform enhancements have enabled faster entry into new markets and accelerated the multi-brand expansion strategy in the region. The Mr. Green brand launched in Spain and Latvia, and the company began its entry into the rapidly regulated Latin American market by acquiring a majority stake in Alfabet S. A. S., the Colombian company that operates the BetAlfa. co brand. In addition, at the end of the reporting period, it secured a new license in the province of Buenos Aires in Argentina.

Maintaining an agile marketing strategy, we focused on improving efficiency whilst responding quickly to changes in the sports landscape. Unique active players increased by 4% and ARPU increased by 12%. Football activity recovered in the second half of the year, driving up total earned margins. However, our second largest international market was tennis, which continued to experience pandemic constraints below the elite level, which is reflected in net revenues for this sport. Gaming maintained its strength throughout the year, and gained market share in Sweden and Denmark. As a result, international net revenues increased by 16%.

Online operating profit

Cost of sales increased 14%, mainly reflecting the remote gaming tariff increases implemented in April 2019 and a mix shift towards gaming. Operating expenses increased 8%, mainly reflecting an increase in targeted marketing budgets overseas, and adjusted operating profit increased 3%, from £121. 9 million to £2. 0 million.

Platform improvements and product enhancements implemented in recent years are bedding and gaining traction. These have enabled our online businesses to adapt to the impact of the pandemic and drive revenue growth and marketing effectiveness, while customer protection remains a top priority.

The progress we are seeing in UK and International Online is gaining momentum, as evidenced by our strong start to 2021. We are confident that further platform enhancements and product improvements over the course of the year will enable us to further improve our competitive position. There remains a significant opportunity to further personalize customer experiences, increase marketing efficiency and take customer service to a new level by introducing customer-facing automation and further automation of our internal processes over the course of the year.

We are more committed than ever to player safety and welcome the UK government's review of gambling, which began in December 2020. We will engage with the relevant authorities throughout the review to encourage the new regulatory framework to work with the progress already made by our industry. It is important that the review is evidence-based and strikes the right balance between protecting vulnerable players and continuing popular products that offer customer protections that are not available unregulated.

Retail (26% of Group revenue)

Amount of sports bed

Winning rate

Pure income of sports

Game pure income

Retail pure income

Operating income after adjustment 2

The retail business in 2020 was the 1st anniversary of the £ 2 limit of the B2 game console in April 2019, one year after the store closure program in September 2019, and the local country in the UK, which supports COVID-19. It reflects several important dynamics, a number of closures. As a result, the pure and small sales were decreased by 30 % based on 5 (LFL), the yea r-o n-year.

Flexible business development

Pandemic had a significant impact on retail shells and profitability, and all of our 1. 414 stores (2019: 1. 568 stores) were influenced by various rock and tier restrictions in 2020. Nevertheless, the closing of 713 stores was completed in response to the thre e-year review in September 2019, and in the first half of the year, the sale of 35 bottles of North Ireland and Mans Island was completed, and a good start was performed. I cut it. In the second half, negotiations with the landlord were completed, and the business conditions were executed.

For some time, the retail environment was expected to become unclear due to the influence of the pandemic (global trends). As a result, in June, the store was reviewed and decided to postpone 119 stores. Most of the affected employees were redistributed to the remaining stores, and the net cost associated with the store was absorbed into an existing store closure program. Due to the correction of the retail forecast and the effect on the expected cash flow, the retail real estate without cash spending has occurred by £ 125. 7 million.

As a result of these agile actions, the sustainable future of the retail business has been secured. The store of the Group has a highly profitable transaction during business, and the retail business is elastic and popular. However, pure income has decreased significantly because the store needs to be closed regularly. Sportsbetting decreased by 30%in LFL, and as a result of sports that is advantageous for booky, the total victory margin increased to 19, 8%(2019: 18, 9%), but the pure income of sports is 26 in LFL. The %decrease. Gaming pure income continued to be limited to 2 pounds in the first quarter, pushing pure income to 35%by autumn LFL. Amount of sports bed

Winning rate

Pure income of sports

Game pure income

Retail pure income

Operating income after adjustment 2

Flexible business development

Winning rate

Pure income of sports

Game pure income

Retail pure income

Game pure income

Retail pure income

Flexible business development

At the time of opening, we focus on running real estate safely, protecting customers and colleagues, and responding quickly to government regulations. We have established a retrospective standard by implementing a wide range of measures to ensure a safe Cov y-donation environment, and creating an i n-store experience to get 9, 4/10 in security evaluation.

We have increased the density of the sel f-owned sel f-owned sel f-service betting terminal (SSBT) to 2, 5 units per store (2019: 2, 4 units) as of the end of the year, and the stores have reopened, and unintended. When the unit is redistributed to the entire real estate, it is expected to reach a 2, 7 density. The ratio of sports beds performed by this method has increased to 26%(2019: 19%), 70%of all soccer beds are performed via SSBT, and store employees have more than 1 million "call overnabets". Promoted.

For store employees, the salary of surplus people has been raised to 100%, the frequency of internal communication has increased, leading to a retail promotional employee net promotion score (ENPS) 32.

Disciplined cost management can reduce operating expenses by 35 %, and sales costs have been reduced by 53 % as in net income. However, retail operating costs are almost flat. As a result, the operating loss after adjusting the retail was £ 29. 5 million (2019: operating profit of £ 83. 2 million).

Retail will continue to maintain the value of William Hill brand and play an important role in providing a single perspective on British customers. We started the transition to omn i-channel, put UK retail and UK online under one leadership team, and set one goal.

At the time of writing this manuscript, all British retailers have closed all stores and are in a nationwide blockade. While waiting for guidance from the British government when to open the store, we will develop an omn i-channel strategy and promote the unified British marketing strategy with William Hill Brand. We open and use digital stores. Our stores provide a true opportunity to modernize your personal experience by fusing our online and retail technology platforms.

William Hill US 10 (13 of Group Revenues)

Local Currency Basis

Gross Profit Margin

Adjusted Operating Profit 2

The legal sports betting market in the US has been transformed since the Professional and Amateur Sports Protection Act was overturned in May 2018, and we expect the US to be one of the largest markets for sports betting and iCasino. We forecast the US addressable market size at $30 billion to $35 billion 13 .

2020 was a transformational year for our US business. We grew our team, expanded our footprint across the country, and accelerated the development of our proprietary technology platform. We achieved these results under the most challenging circumstances, including extended suspensions of major league and college sports, periodic casino closures and attendance restrictions, and employee furloughs. However, our team remained focused and dedicated, growing direct and indirect betting volumes to $3. 25 billion for the eighth consecutive year, expanding our live operations to five new states, and launching iCasino.

A Valuable Partnership Model Leveraging Strong Brand Associations

During the year, we forged new partnerships and strengthened existing relationships. In February 2020, we announced an exclusive partnership to provide betting data and sports betting content to CBS Sports. In September, we further expanded our media presence by leveraging a co-exclusive agreement signed between our partner Caesars and ESPN, where William Hill will provide sportsbook odds and embed links to our sports betting app in ESPN's rich sports data portfolio. These new multimedia relationships allow us to have a presence on two of North America's leading sports media platforms, providing national exposure to avid sports fans and providing links to our app and access to one of the largest fantasy databases in the United States.

Acceleration of technology development and nationwide expansion

The confusion associated with pandemic (global trends) has a significant impact on personal retail, but the United States is still a source of powerful growth. As of March 4, 2021, the Company has access to 26 states, operates more than 170 sites in 15 states (2019: 9 sites), including 11 sites (2019: 2019: 4 sites), two sites provided ICASINO (2019: zero), Michigan in January 2021, and in February 2021, Mobile and ICASINO started in Virginia. did.

At the beginning of the year, he was driven by the powerful growth of Betting. After the main sports league reorganizing the season and the casino, the growth has accelerated a lot in the second half. As a result of operato r-friendly sports, the total victory margin increased by 1, 0 ppt to 7, 7%, including 10%of the entire betting, up 32%to 167 million pounds. 63%(55%in 2019) and as a service provider of 63%of the handling via online channels, and the professional market share that coordinated the integration of Saesters and CG technology was 19%. 。

The cost of sales increased with the growth of pure income, an increase of 44 %. The team has grown by combining new recruitment and Omboding of Caesers and Cantant Sports Book Team. As a result of disciplined cost management, the cost increased 21%, and the operating income after adjustment was £ 12. 4 million.

William Hill US has prepared a building block to develop a large leading business. The momentum built at the end of 2020 was sustained in the first few weeks in 2021, and the number of broadcasting stations during the Super Bowl period was about twice as much as last year. We have ensured powerful brand access, wide media presence, wide market access, class best technology, and worl d-class teams. Through partnership models, we are in the optimal position where we can ensure that sport s-betting and the rapid growth of Ikasino will be integrated, and will integrate William Hill, Saesers sports betting and squid.

2020 is the year of uncertainty due to the effects of the COVID-19 pandemic, and it requires cautious steering, but the group's financial situation is healthy.

After adjusting in 2020, the operating profit of £ 27. 3 million pounds decreased by 897 million pounds due to the entire group of COVID-19 pandemic (2019: 2019: 147 million pounds).

The statutory operating profit after the tax increased £ 51 and 0 to £ £ 78, 0 m (2019: £ £ (27, 0). Mainly £ 208, 3 m in receiving a added value tax return for rates generated in retail assignments between 2002 and 2013, and impaired in the retail sector without cash spending £ 125, 7 m By offsetting. After adjustment, the adjustment of operating profit and legal operating income is detailed in the Note 3 of the financial statements.

Most retail expenditures in 2020 were traded with closed or restricted, and the total pure income decreased by 16 % yea r-o n-year. Online and the United States have increased their profits, despite the decline in sports calendars and the restrictions of admission imposed on US casinos. This growth was achieved by the combination of investment in new products and promotion and entry into the new market. In the fourth quarter, the good results of sports contributed to the end of the year.

The groups of the group are in different life stages, and in normal years, they are free to combine mature cache creation and investment in market expansion. In 2020, COVID-19 affected this complementary mix, and in order to survive uncertainty while realizing strategy, more advanced financial flexibility was needed.

This flexibility was secured through five clear steps:

Gross Profit Margin

Adjusted Operating Profit 2

3. The 19, 99 % thir d-party allotment increased in June raised 218 million pounds.

5. RCF repayment.

In this way, the group finance was carefully managed, and in combination with the strong performance of each division, pure interes t-bearing debt was expected to be £ 113. 1 million, the end of the fiscal year with the strengthening of balance sheets.

Online was affected by sports sluggish from March to June and annual sports and calendars due to the restart of the season. During this period, customers could hardly find alternative sports and content, such as Russian table tennis and Belarus soccer. As a result, the online station level was between 30 % and 50 % before 19.

Customers switched products and turned on leisure spending due to the implementation of economic regulations in many countries.

As a result, net income was 9 % higher than the previous year on a statutory basis, 7 % higher than the previous year, including Green. Mr. Green is now completely integrated into William Hill, and the powerful gambling brand has contributed to the group, especially when sports events.

Increased net income was £ 121. 9 million after adjustment, exceeding the previous year by 3 %.

2020 is the year of uncertainty due to the effects of the COVID-19 pandemic, and it requires cautious steering, but the group's financial situation is healthy.

After adjusting in 2020, the operating profit of £ 27. 3 million pounds decreased by 897 million pounds due to the entire group of COVID-19 pandemic (2019: 2019: 147 million pounds).

chief executive officer

Main risks and uncertainty

Gross Profit Margin

Adjusted Operating Profit 2

3. The 19, 99 % thir d-party allotment increased in June raised 218 million pounds.

The group will continue to take a thorough and appropriate approach to risk management while carefully balancing commercial reality. When setting up ris k-selection, regulation requirements and customer protection are the top priority. We have invested in governance and management environment.

5. RCF repayment.

COVID-19 pandemic impact continues to affect business risk profiles worldwide. After the major sporting events were resumed in May 2020, the sports calendar will continue to be held, albeit a little different from normal. However, if the pandemic ends, sports events and schedules may be further impacted. We have improved capital structure to ensure business skills to deal with further confusion in transactions.

Customers switched products and turned on leisure spending due to the implementation of economic regulations in many countries.

Following the announcement of the acquisition by Caess, directors do not recommend paying dividends.

2020 is a decisive year for William Hill, and the balance sheet is in a healthy state due to cautious financial management, and the group will bring in 2021 in 2021 with the intention to find the appropriate partner or owner of Caesters. Can be captured.

chief executive officer

-Regates, politics, legal risk

-Operformal risk

To guarantee that this approach to regulations and players' safety is understood, built into the entire business, and executed consistently

This is to execute consistently.

We succeeded in shifting to a home model during the pandemic. Employees' mental and physical welby swings are closely monitored and managed throughout the business through training and Saports for all staff. Information security risks on home work have been identified, and the management system has been further enhanced to reduce this risk. This risk is constantly being reviewed by the information security team. The group continued to invest in products and technology, especially in the United States, introduced a new online game front end (quick silver), engine platform, and retail operating system (Liberty), and entered five states in the same year. Therefore, annual capital investment was £ 90. 3. 2 million (2019: £ 94. 6 million).

Following the announcement of the acquisition by Caess, directors do not recommend paying dividends.

chief executive officer

Main risks and uncertainty

Review the risk profile and identify six risk categories:

-Regates, politics, legal risk

-Operformal risk

To guarantee that this approach to regulations and players' safety is understood, built into the entire business, and executed consistently

This is to execute consistently.

The British and EU's trade agreements and the agreement between the UK and Spain to put Gibraltar into the Schengen area has reduced the risks related to the Group's business. Until the British government's new immigration measures have been revealed, some uncertainty, such as the impact of hiring from outside the UK, will remain.

Until the British government's new immigration measures have been revealed, some uncertainty, such as the impact on hiring from outside the UK, may remain, and the competition for British staff may intensify.

In order to smoothly promote the acquisition of Caesers, the time and effort of the management must be the risk that if the management is not wel l-managed, it will affect normal work. Caesers have shown their intention to sell business outside the United States, and this is also a great deal to deal with this issue in a timely manner, minimizing the impact and confusion of the Group. Requires effort and management resources.

Regulatory risks, political risks, and legal risks have been well managed at a delicate time of Cavid 19 exclusion. The reconsider of the scheduled British gambling method, which is scheduled, provides an opportunity for the industry to support evidenc e-based reviews that provide a regulation framework suitable for the digital age. We ourselves, and through the industry group Betting and Gaming Council, we provide evidence in the review process. The most important risks are the regulations and legal environments that affect the current regulations by the UK Gambling Commission, and to affect our business development on our European continent. It is related to new risks caused by changes.

Director's responsibility for the final financial results announcement

Directors will check the following as far as they know:

William Hill US 10 (13 of Group Revenues)

Directors will check the following as far as they know:

-The financial statements of the Group are created in accordance with the international financial reporting standards adopted by the European Union, Article 4 of the IAS Regulations (in the case of consolidated financial statements) and the UK GAAP (UK GAAP). It is made in accordance with the international financial report standards (IFRS No. 101) (for financial statements of the parent company), including the financial statements of the parent company, and the financial status and management results of the Group are true and fair. It shows a view. The British and EU's trade agreements and the agreement between the UK and Spain to put Gibraltar into the Schengen area has reduced the risks related to the Group's business. Until the British government's new immigration measures have been revealed, some uncertainty, such as the impact of hiring from outside the UK, will remain.

Director's responsibility for the final financial results announcement

Directors will check the following as far as they know:

-Anual report & report strategic report and risk section; Management report "2020 Fiscal year Report" is faced by the Group with fair reviews on business growth, business performance and the status of our group. Includes main risks and explanations of uncertainty.

The responsibility statement was approved by the Board of Directors, and the following person signed on behalf of the Board of Directors:

U. Bengtson M. Ashley

Highest management officer

March 4, 2021 March 4, 2021

William Hill PLC's 2020 year report and financial reports (hereinafter referred to as "report") will be on March 10, 2021 (www. williamhillPlc. Report. Convocation notice will be distributed to shareholders 21 days before the AGM on June 30, 2021.

William Hill PLC

Consolidated profit and loss statement

52 weeks ended on December 29, 2020

52 weeks ended on December 31, 2019

Exception items and adjustments (Note 3) £ M

Total total

Exception items and adjustments (Note 3) £ M

Total total

Other operating income

Other operating expenses

Share to partner's performance

Interest rates and tax before tax/(loss)

Profit for tax/(loss)

Gain and loss

Parent company shareholder

Rable per share/(loss) (pence)

William Hill

Consolidated comprehensive profit statement

52 weeks ended on December 29, 2020

52 weeks ended on December 31, 2019

Gain and loss

Items that were not r e-classified into profit and loss

Mathematical calculation correction in the fixed benefit pension system

Taxes for r e-specification to the fixed benefit pension system

Items that may be r e-classified into profit and loss later

Conversion of overseas operating activity

Other comprehensive profit / (loss)

Comprehensive profit / (loss) total

Parent company shareholder

Flexible business development

Floating calculation document such as consolidated shareholders

52 weeks ended on December 29, 2020

Capital belonging to the parent company shareholder

Shareholder £ M

Premium stock account £ M

Capital redemption fund

Merger reserve

Holding sel f-stock

Compensation and conversion reserve £ M

Cumulative loss £ M

As of December 31, 2019

Interprise profit / (loss)

Mathematical calculation direction change to the definitive benefit pension system

Tax on revaluation of defined benefit pension plans

Exchange differences on translation of foreign companies

Total comprehensive income/(loss) for the period

Acquisition and issue of treasury shares

Transfer of treasury shares to recipients

Placement of shares (note 11)

Credit recognised as share consideration

Tax expense on share-based payment

As at 29 December 2020

Attributable to shareholders of the parent

Subscribed share capital £m

Premium share account £m

Acquisition and issue of treasury shares

Mergers reserve £ m

Treasury shares held £ m

Compensation and translation reserve £ m

Accumulated loss £ m

As at 1 January 2019

Loss for the period

Actuarial reorientation to defined benefit pension plans

Tax on reclassification to defined benefit pension plans

Exchange gains/losses on translation of foreign operations

Total loss for the period

Purchase and issue of treasury shares

Transfer of treasury shares to recipients

Collaboration with Caesars

Deduction recognised as consideration for shares

Tax credit on share-based payment

Acquisition of Mr Green

Dividend paid (note 10)

As at 31 December 2019

William Hill plc

Consolidated statement of financial position

As at 29 December 2020

As at 29 December 2020 £ m.

As at 31 December 2019 £ m

Property, plant and equipment

Interests in associates

Deferred tax assets

Pension assets

Trade and other receivables

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

Your last chance to give any game a Build #YourOdds EPIC Boost. How it works. Follow a few simple steps to use this offer. Offer ends In August , as a result of the economic effects caused by the COVID pandemic, the company announced that it would close shops permanently. Evoke plc, formerly Holdings Limited, is an international sports betting and gambling company. It owns brands such as casino, poker, sport.

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