LONDON (dpa-AFX) - William Hill PLC (WMH.L), in a trading update for the unaudited 17 weeks and 43 weeks to 23 October 2018, said that online net revenue growth was 4% in year-to-date, with Sportsbook +8% and gaming +1%. Full-year operating profit is expected to be in the range of 225 million pounds to 245 million pounds, assuming normalised gross win margins in the remaining weeks of the year.
The company said, 'The UK Government has stated that the Triennial Review changes will be implemented in October 2019 and we will be ready to meet that deadline, though mitigation benefits are not expected to flow through until 2020.'
The company noted that its ambition is to build a digitally led and internationally diverse gambling business, and to at least double profits between 2018 and 2023.
Overall, the company said it target is to grow digital revenues to reach 1 billion pounds, in constant currency, by 2023, representing a CAGR of 10%, and by increasing operational efficiency to double profits by 2023, representing a CAGR of 13%.
The company said, 'Despite our confidence in the longer term opportunity, 2019 will be a transition year as good underlying growth will be offset by the increased Remote Gaming Duty and the full-year effect of regulatory headwinds. As a consequence Online profit is expected to be broadly flat on 2018 (excluding any contribution from MRG) before we expect to see a return to double-digit growth thereafter.'
The acquisition of MRG is expected to contribute about 25 million pounds EBITDA plus synergies in 2019. Synergies of more than 6 million pounds p.a. are expected by 2021.
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