William Hill focuses on marketing efficiency
Published 4th March 2019
William Hill has said a focus on marketing efficiency will help it achieve its target of doubling online profits in the next four years.
In its annual report the gambling group reported net revenue of £1.62bn in 2018, up 2% compared to 2017. It saw a loss before tax of £721.9m.
William Hill said the period saw a good underlying online performance, with actives up 25%, underlying net revenue up 6% and operating profit up 11%.
William Hill said overall marketing spend was up 6%. Costs in online grew £10.3m (3%) to £350.1m, due to an increase in marketing investment offset by a reduction in staff costs from operating efficiencies delivered under the transformation programme.
The company said: “Our ambition is to reach £1bn in revenue and to double profits from our online business by 2023.
“That implies roughly 10% CAGR in revenues and 13% CAGR in profits each year over the next five years.
“We expect to achieve faster profit growth rates primarily through recalibrating our cost base, and further improving the efficiency of our marketing spend.
“Our marketing is increasingly targeted, with our technology enabling more attribution-based marketing whereby customers are treated individually or as part of a small group.
“This means directing our marketing resources more effectively towards relevant customers with relevant messages.”
Its strategy, first outlined at its capital markets day in November last year, is centred around three areas: driving digital growth in the UK and internationally; growing a business of scale in the US; and remodelling UK retail.