William Hill Online, a subsidiary of the main William Hill brand and joint venture with mammoth software provider Playtech, has posted impressive financial results covering the entirety of 2012. The subsidiary’s individual revenues increased by 27%, which had the considerable knock on effect of improving the overall William Hill group’s revenues by 12% and operating profit by a total of 20%.
As an all-round online gaming company, William Hill online derives revenue from a multitude of operations from sports betting to online and mobile casino gaming. However, the fact that Playtech owns a significant proportion of the operation indicates just how highly regarded William Hill Casino and the offshoot William Hill Mobile Casino are to the company. By working closely with one of the world’s leading software providers, they can ensure that they bring the best of the software together with the power of an established brand to players around the world.
The news of increased revenues comes amid various issues affecting the firm and its potential for on-going profitability. One such issue is in Germany, where Schleswig-Holstein initially stated that gambling licences issued in the state were not necessarily valid throughout the entire country, before ultimately deciding to join the nationwide German treaty on online gaming. William Hill has already made contingency plans should they be required to cease operations in Germany altogether, although they predict that doing so would cost the company around £6 million in lost revenues. Only the online and mobile casinos currently remain in Germany following closure of the sports betting book last year, which came at the same time as withdrawing from the Greek market, something that cost the company around £8 million in total.
In something of an effort to combat these losses, the company is looking to push ahead with their acquisition of Sportingbet’s operations in Australia, which will give them a new foothold in a more stable online gaming market, and also allow them to introduce the brand officially to Aussie mobile casino players.
The company and players may also have to contend with the fallout of the protracted negotiation process with Playtech that sees William Hill attempting to buy the software developer out of their 29% stake in William Hill Online. Whether William Hill decides to move to the Microgaming platform or retain Playtech as a licensee remains to be seen, although they are more concerned with the valuation, particularly in light of the recent results. Naturally, such excellent performance may well drive up the asking price of Playtech’s stake, and while a deal is expected early this year, it may require a lot more work on both sides before coming to fruition. Playtech themselves are in the midst of something of a growth period on the back of increased uptake of their mobile casino platform, and are in no dire need to accept anything less than the market value for their share.
As things stand, William Hill may choose to wait until 2015 when their next guaranteed option for a buyout comes into play, something that takes place after the UK’s planned implementation of a new online gambling tax.
Players that wish to enjoy the latest Playtech mobile casino games on their device can do so away from the uncertainty at Casino.com Mobile Casino, a highly recommended operator that is almost certain to be using the Playtech platform for years to come. You can find out more about the company itself and what they have to offer casino players in terms of promotions and games in our dedicated review within the Mobile Casinos section of the site. You can also be sure to stay up to date on all the developments concerning William Hill Mobile Casino and Playtech here at MobileCasino.net.