William Hill's adjusted EBITDA fell by 37%, to £38 million (H1 2023: £61 million). Widerström, discussing retail challenges, said: "In the retail sector, we are seeking an internal gaming cabinet and software solution. The reason for this is clear: to drive differentiation.
"However, our initial tests showed that despite a richer variety of games and more unique promotional tools, customer response to different product solutions was poor. All our plans are data-driven, and when the data does not support, we reassess and take decisive action."
Meanwhile, despite growth in "core markets" such as Spain, Italy, and Denmark, the international division revenue of parent company Evoke remained stagnant at £265 million.
The positive momentum seen in core markets by the company was offset by a decrease in international market revenue due to Evoke's changing business model and the termination of its H1 joint venture in the US market.
To take action and continue the company's transformation process, H2 transactions will see Evoke's new leadership team take decisive action to address the poor performance in H1 and reverse short-term transactions, while building enhanced capabilities to drive competitive advantage.
The leadership maintains guidance for a return to growth in H2 transactions, with revenue growth of 5-9%, and the adjusted EBITDA profit margin is expected to increase to about 21%, while committing to achieving "a target cost efficiency of £30 million for the full-year transactions."
Widerström at checkout said: "We are thoroughly transforming this business. Although the scale of change is large, we must achieve medium to long-term profit growth and value creation.
"We have taken bold, decisive actions, both to drive a reversal in short-term transaction performance and to invest in the group's capabilities to drive gradual change in value creation, and to build a larger, more profitable, more sustainable, and more cash-generative business in the future.
"We have clear plans, vision, and financial goals. Due to our strategic progress and business enhancement, I am more confident in achieving our value creation plan and driving sustainable profit growth in the coming years."
