Business Bulletin 12 Mar 2017
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Long search over as Bowcock gets Hills job
The search had started last July but after nine months it was Philip Bowcock, who had been William Hill’s interim chief executive, who was given the job permanently by the bookmaker on Friday.
Despite a number of other names having been linked with the job, chairman Gareth Davis described Bowcock as being the “outstanding candidate” for the role.
Bowcock, who only joined the firm in 2015 and was chief financial officer before taking over the seat vacated by James Henderson last year, was the unanimous selection of the board, Davis said.
Bowcock, whose basic salary will rise to £600,000 from £550,000, said he was “very proud” to be in the position.
He went on: “There is a lot to do but a lot has been done. This appointment doesn’t change the direction of the company and we are going to continue to drive forward our strategy.”
Although Bowcock spent seven years at Hilton Group as vice president of finance at a time when the company owned Ladbrokes, his lack of experience in the gambling industry had been held up as a negative against his appointment.
He joined William Hill only in November 2015 from cinema operator Cineworld Group, having previously held roles at nightclub group Luminar, Barratt Developments and Tesco.
Bowcock said: “I think the important thing is I am surrounded by people who understand this industry and so they can help guide me along the way if there is anything I need to know specifically.”
Davis, who himself is set to step down before next year’s annual meeting, said the company had gone through “a very extensive and thorough process” before deciding on Bowcock.
He went on: “I saw quite a few people from outside the business and indeed some outside the sector but I can say hand on heart that Philip was the outstanding candidate.
“Obviously it’s helpful to be able to see how he performed in the eight months as interim – he got stronger and stronger.”
He added: “It is good for me to be able to say that Philip’s selection from the board’s point of view was absolutely unanimous which is always a good place to be in.”
Analyst David Jennings of Davy said the news was not a great surprise.
He added: “While the board would probably have preferred to find a candidate with more gaming industry experience, the reality is that this search has gone on far too long.
“William Hill needed to provide certainty to its employees and the market and this appointment achieves both. As such, we think is a positive development.” William Hill’s share price closed up 2.70p at 272.30p.
Transformational year for Paddy Power Betfair
Paddy Power Betfair chief executive Breon Corcoran hailed a “transformational year” as the company unveiled final results for 2016 in line with forecasts.
In their first full-year results announcement as a merged company, Paddy Power Betfair reported revenue up 18 per cent to £1.55 billion, with double-digit growth across all four operating divisions of online, australia, US and retail.
Underlying ebitda (earnings before interest, taxation, depreciation and amortisation) was up 35 per cent to £400 million, but for statutory purposes the group reported a loss of £5.7m, blamed primarily on expenses relating to their merger last year.
The company said trading in 2017 had been in line with expectations, with group sportsbook stakes up 22 per cent.
Chief executive Breon Corcoran said: “Last year was a transformational year for Paddy Power Betfair with much of the integration of the businesses completed sooner and more efficiently than expected.
“The integration of our technology platforms is on track and customers are already seeing some benefits, including more markets and better odds.”
Corcoran said much of the firm’s focus in 2017 would be on putting the two brands on the same technology platform and hinted further acquisitions had not been ruled out, telling analysts the platform “will include the flexibility of operating further brands in the future”.
Levy replacement a step closer
Racing’s dreams of a new funding regime moved significantly closer last week when the government published The Horserace Betting Levy Regulations 2017, the draft legislation that will lead to the replacement of the levy system from April.
Replacement of the levy does not require primary legislation and is being done through a statutory instrument, although that must get the consent of both houses of parliament.
The new system will extend the levy to remote betting operators based offshore who have so far been outside the levy net. The sport expects the new system to bring in an extra £30-£40 million per year.
BHA director of corporate affairs Will Lambe said: “The publication of the legislation capturing offshore betting activity is the most important step yet towards British racing securing an enforceable and sustainable funding mechanism that will make such a difference to the grassroots of our sport, and those working within it.”
The instrument confirms earlier guidance from government that the rate for the new system will be ten per cent, applied to gross profits on British horseracing betting above £500,000 per year.
The new system must gain state aid approval from Europe, with the government having notified the European Commission of its plans on January 13.
While the plan remains for the new regulations to start on April 1, they will not come into force until that approval is obtained. Should there be a delay, the 56th levy scheme will run from the start of April until the new system is in place.
Record results for 32Red
Online gaming company and prominent horseracing sponsor 32Red last week unveiled record annual results for 2016.
The company, which is set to join Unibet and Stan James as part of the Kindred Group stable, reported total net gaming revenues up 28 per cent to £62.3m and ebitda up 102 per cent to £10.6m.
Chief executive Ed Ware said: “It is once again a pleasure to announce another record annual performance from 32Red.
“In 2016 the group delivered continued strategic progress across the business with outstanding growth on mobile, further successful product enhancements and highly successful marketing investment, all the while maintaining one of the highest levels of regulated revenue amongst our peers.”
He added: “The group’s outstanding performance in 2016 is, above all, testament to the efforts of our outstanding team.
“Their passion, skill and dedication continues to drive the business forward. 2017 is set to be another landmark year for 32Red and I would like to thank all of my colleagues for their continued dedication and hard work.”[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][bsf-info-box icon=”Defaults-envelope-o” icon_size=”32″ pos=”left”]For more information about Racing Post’s B2B services, contact us or browse more of b2b.racingpost.com.[/bsf-info-box][vc_column_text]Racing Post B2B caters for all digital content requirements across web, mobile, tablet and retail. But we are more than just a data provider – we enhance raw data with the best and most recognisable content authored by the biggest names in sports betting. Racing Post B2B offers an unrivalled worldwide content portfolio for bookmakers and media associations. Acknowledged throughout the racing and gaming industries, the Racing Post creates bespoke products suited to your audience that will enable your company to maximise profitability by offering unique data, editorial or multi-media solutions.[/vc_column_text][/vc_column][/vc_row]