William Hill plc
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William Hill plc Financial Snapshot
Operating Performance
Fast Facts
Greenside House, London, N22 7TP,United The company reported revenue of US$1,833 million
Headquarters Address
Kingdom during the fiscal year 2011 (2011). The company's
revenue declined at a compounded rate of 0.46%
Telephone + 44 208 9183600
during 2007–2011, with an annual growth of 11.19%
over 2010. In 2011, the company recorded an
Fax + 44 208 9183775 operating margin of 19.52%, as against 23.45% in
2010.
Website www.williamhillplc.com
Ticker Symbol, Stock Exchange WMH, London Stock Exchange (LON) Revenue and Margins
Number of Employees 15,900
Fiscal Year End December
Revenue (in US$ million) 1,833
SWOT Analysis
Strengths Weaknesses
Return on Equity
Multi channel offering Declining operational performance
The company recorded a return on equity (ROE) of
12.98% for 2011, as compared to its peers, Paddy
Strengthening solvency position Geographic concentration Power plc (Ticker: PLS), Ladbrokes PLC (Ticker:
LAD) and Sportingbet Plc (Ticker: SBT), which
Strong market position recorded ROEs of 52.73%, 38.63% and 11.60%
respectively. The company reported an operating
margin of 19.52% in 2011.
Opportunities Threats
Geographic expansion Intense competition Return on Equity
New Product launches Regulatory framework
Strategic alliance Rising unemployment in the UK
Liquidity Position
The company reported a current ratio of 0.64 in 2011,
as compared to its peers, Paddy Power plc,
Ladbrokes PLC and Sportingbet Plc, which recorded
current ratios of 1.01, 0.38 and 2.95 respectively. As
of December 2011, the company recorded cash and
short-term investments of worth US$184 million,
against US$0 million current debt. The company
reported a debt to equity ratio of 0.52 in 2011 as
compared to its peers, Paddy Power plc, Ladbrokes
PLC and Sportingbet Plc, which recorded debt to
equity ratios of 0.00, 1.57 and 0.34 respectively.
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William Hill plc - SWOT Profile Page 1
William Hill plc
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 5
1.3 Major Products and Services ........................................................................................................................... 6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 7
2.2 Key Financial Performance Indicators ............................................................................................................ 10
2.2.1 Revenue and Operating Profit.................................................................................................................... 10
2.2.2 Asset and Liabilities ................................................................................................................................... 11
2.2.3 Net Debt vs. Gearing Ratio ........................................................................................................................ 12
2.2.4 Solvency ................................................................................................................................................... 13
2.2.5 Valuation ................................................................................................................................................... 14
2.3 Competitive Benchmarking ............................................................................................................................ 15
2.3.1 Market Capitalization ................................................................................................................................. 15
2.3.2 Efficiency................................................................................................................................................... 16
3 SWOT Analysis ...................................................................................................................................... 17
3.1 SWOT Analysis - Overview ............................................................................................................................ 17
3.2 Strengths ....................................................................................................................................................... 17
3.3 Weaknesses .................................................................................................................................................. 17
3.4 Opportunities ................................................................................................................................................. 18
3.5 Threats .......................................................................................................................................................... 18
4 History .................................................................................................................................................... 19
5 Key Employees ...................................................................................................................................... 21
6 Key Employee Biographies ................................................................................................................... 22
7 Locations and Subsidiaries .................................................................................................................. 23
7.1 Head Office ................................................................................................................................................... 23
7.2 Other Locations and Subsidiaries .................................................................................................................. 23
8 Appendix ................................................................................................................................................ 24
8.1 Methodology .................................................................................................................................................. 24
8.2 Ratio Definitions ............................................................................................................................................ 24
8.3 Disclaimer ..................................................................................................................................................... 28
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William Hill plc - SWOT Profile Page 2
William Hill plc
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 6
Table 2: Key Ratios - Annual ........................................................................................................................................... 7
Table 3: Key Ratios - Interim ........................................................................................................................................... 9
Table 4: Key Capital Market Indicators ...........................................................................................................................