William Hill announces trio of board appointments after merger attempt fails

On Monday, the company said it had appointed John O’Reilly, former managing director at Coral Interactive, Robin Terrell, former chief customer officer at Tesco, and Mark Brooker, former chief operating officer at Betfair, as non-executive directors.

The trio has extensive experience of the gambling and retail industries and may boost a board that has come under heavy criticism from investors, especially after it entered talks for a £4.6bn merger with Canada’s Amaya, owner of Pokerstars, which subsequently failed.

William Hill’s largest shareholder publicly attacked the deal, criticised the company’s leadership and suggested it consider putting itself up for sale. Former chief executive Ralph Topping said the board, led by chairman Gareth Davis, had failed to “sort out” the business, which has been squeezed by competition from online competitors and new taxes on the gambling industry.

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The bookmaker remains without a permanent chief executive after James Henderson abruptly stood down in July amid growing concerns over its digital strategy

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Mr Davis said on Monday: “These appointments significantly enhance the board’s digital, multichannel and gambling industry experience. John’s, Robin’s and Mark’s collective expertise will strengthen the business as we implement our strategy of digital and international diversification.”

The company announced the appointments alongside a trading update. It reported that total net revenues increased 6 per cent in the four months to October 25, helped by a 4 per cent rise in its online business, which had been plagued by technical problems earlier in the year.

Shares rose 2.5 per cent in the opening minutes of trading in London to 290.70p.

William Hill said it had made “significant improvements” to its mobile sports betting apps, as well as enjoying above-average win margins thanks to favourable football results.

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It added that it is making plans for £30m of operating efficiencies to be implemented next year, with the benefits to be reinvested in further improvements for its online business

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The company also said full-year operating profits will be “at the top end” of its earlier £260m to £280m guidance — something likely to reassure investors after a profit warning in March.

For months, the bookmaker has been searching for a major deal, but has been left with few options in an industry that has rapidly consolidated. Rivals Betfair and Paddy Power combined earlier this year, while Ladbrokes and Gala Coral have also finalised a merger. GVC Holdings, owner of Sportingbet, bought Bwin.party last year after outbidding 888 Holdings.

Last year, William Hill entered merger talks with 888, but was unable to close a deal due to opposition from one of 888’s largest shareholders. In August, William Hill’s board rebuffed a £3bn takeover approach by a consortium of Rank Group and 888, saying the complex deal to merge the three companies was “based on risk, debt and hope”.

The renewed focus on turning round its online business comes as the group is likely to face new regulatory pressures next year. In October, the government launched a review of the UK bookmaking industry and is considering a number of new curbs, from a ban on daytime TV advertising to reduced stakes on in-store betting machines, which account for roughly a quarter of William Hill’s net revenues.

In Monday’s trading update, the group said it had 12 per cent revenue growth in its Australian business and 40 per cent revenue growth in its US arm in the fiscal year to date.

However, its retail division — the largest part of the business — recorded a 4 per cent fall in the amount wagered over the 43 weeks to October 25, though revenues at the division increased 3 per cent.