Once again, the joint venture of William Hill, William Hill Online is the subject of a lot of rumors and speculations regarding the fractious partnership between William Hill and Playtech. Many people in the online gambling industry are stating that very soon, William Hill is going to announce the buyout of the twenty-nine percent interest that belongs to Playtech. They estimate that such an announcement can be as soon as the upcoming Friday in time with the financial reports of the company regarding the 3rd quarter of this year.
This partnership has been around for over four years, and in terms of finance, the deal has been a success. The CEO of William Hill, Ralph Topping has previously mentioned William Hill’s intention to buy out Playtech’s shares in order to take over the entire operator. This is due to the fact that the online activity is one of the main business generators for Will Hill and William Hill Online have managed to contribute more than 1/3 of the profits of the bookmaker last year that reached 441.4 million USD. It is also known that the two partners have been talking about this subject.
As for the amount of money that William Hill is going to pay to buy out Playtech’s share in the online venture, it is still not determined. In 2008, the software developed asked for 319.7 million USD for its share in William Hill Online and its experience in the technical matters.
Playtech’s Chief Executive, Mor Weizer has responded to the announcement that was made by William Hill concerning its intention to start pursuing the buy-out option of the 29% share of Playtech in the joint internet venture of William Hill, William Hill Online (WHO). He responded to this announcement through a statement this last Friday. He stated that Playtech and William Hill are always having constructive conversations concerning the future of the internet joint venture of William Hill (WHO) which is considered as one of the successful if not the most successful internet ventures in the market.
He added that WHO plays a very important part of the overall success of William Hill and Playtech is one of the main contributors to this success as it is one of the major suppliers to the online venture. Playtech is also completely dedicated to maintaining this business relationship in order to aid William Hill in its continuous success and growth.
Mor Weizer added that in case William Hill officially declares its intention to exercise the buyout option, Playtech is going to provide William Hill with a very smooth handover of its shares in order to support William Hill and its online venture to go forward. William Hill Online has been a transformational and a very successful partnership for both parties, Playtech and William Hill. According to the current situation, until William Hill declares its buyout intention, Playtech is looking forward to keeping this positive working relationship and to aid William Hill Online in its continuous growth and success.
In the beginning of this month, internet gambling operators, GVC Holding and William Hill stated their intention to make an offer in order to purchase the renowned sport wagering venture, Sportingbet. This is due to the fact that this sport wagering company is one of the largest United Kingdom companies and it has lucrative operations in other markets around the world. The companies showed their intention to buy out the Australian sports wagering branch of Sportingbet which is the most lucrative branch of Sportingbet alongside the rest of its operations across the globe.
This purchase would enhance William Hill’s position as the biggest name in the sport wagering market of the United Kingdom. According to the deal between GVC and William Hill, GVC is going to own the brands of Sportingbet in the unregulated markets.
The two companies made an initial offer of almost £350 million which meant that they were offering 52.5p for each share. This offer was rejected by Sportingbet because the offer is undervaluing the worth of the venture. This is why the two companies approached Sportingbet with yet another offer. This offer was worth £370 million which is 55p for each share. This offer also was rejected as inside sources stated that Sportingbet is looking for an offer of a minimum of 60p for each share. This would mean that the total offer would have to be worth £400 million. According to Numis Securities, the investment banking group, the shares of Sportingbet can be worth as high as 90p which would make the total value of the venture an amazing £600 million.
William Hill has issued its financial reports for the third quarter of this year. This report highlighted the strong growth and other key points for the three month period that ended on the 25th of September.
The report stated that the operating profit of the group witnessed a surge of 26 % which is a great development as last year’s increase in the same period was 9%. The operations profit of the online section increased by 42% and the retail profit increased by eight percent. As for the net revenues, the group’s net revenue increase by nine percent, the retail revenue increased by three percent and the online revenue increased by an astonishing eighteen percent.
Other key highlights of this period included the following:
– Mobile gambling delivered almost twenty seven percent of the turnovers of the Sportsbook which amounted up to a weekly turnover of £10.7 million in the third quarter.
– The gross win margin of Retail OTC (Over the counter) increased by 1.9%.
– The integration of United States activities was completed according to the set schedule in last September.
Commenting on this report, the group CEO, Ralph Topping stated that the company has witnessed a very strong performance that led to profit growth in Q3 – 2012. He also commented on the performance of the company in the market of the United States and said that the company sees that the performance is very encouraging.