William Hill is 'well positioned for growth' despite fall in profits

William Hill is 'well positioned for growth' despite fall in profits

Although the bookmaker was able to report a gross profit of £614.5m in H1, up from £606.3m in the same period past year, the cut in FOBT stakes and spending on United States expansion pushed adjusted profit before interest and tax down 33% from £113.6m to £76.2m.

AJ Bell investment director Russ Mould said: "Investors appear prepared to take the long-term view on bookmaker William Hill after first-half profit was hit by a crackdown on fixed odds betting terminals and investment in the US".

The company on Friday said adjusted operating profit fell 33% to £76.2m, adding that it now expected the full year figure to be £50m - £70m. The company has previously revealed that it hopes to generate nearly 50% of its revenues in the USA gambling market, where it has already managed to position itself as a leading sports betting operator by establishing many new sportsbooks.

Lauding its U.S. moves, where William Hill now enjoys a presence in eight states, with two more to go live imminently, developments concerning the proposed Caesars Entertainment and Eldorado Resorts merger were also addressed.

"We are excited to partner with William Hill and take the sports betting experience to the next level". We are becoming more diversified with non-UK markets now contributing a third of online's revenues, up from just 24 per cent past year.

More news: Victoria's Secret billionaire says Jeffrey Epstein stole $46m of his money
More news: Priyanka Chopra and Nick Jonas are looking for a home
More news: Lawmakers Call for Congressional Investigations After Jeffrey Epstein’s Death

Online revenue was up 14% to £367.3mln on a reported basis, with worldwide online now providing a third of net revenue up from less than a quarter last time.

Philip Bowcock, William Hill CEO, believes USA growth will only benefit the operator in Q3 and beyond. "The response of our colleagues has been incredibly professional during this hard time and I would like to thank each and every one of them for that". Prnewswire.com's news article titled: "IGT And William Hill US Form Strategic Partnership For US Lotteries - PR Newswire" with publication date: September 25, 2018 was also an interesting one.

Bowcock also noted William Hill's ongoing commitment to responsible gambling, saying it retains a long-term ambition to ensure nobody is harmed by gambling. Also Businesswire.com published the news titled: "Eldorado Resorts Completes Transaction with William Hill US to Bring Sports Wagering to Company's National Casino Portfolio - Business Wire" on January 29, 2019. We anticipate that the annual EBITDA contribution from retail operations at Caesars casinos would be around $20-35m within three years. The voluntary whistle-to-whistle ban has begun and we have, together with other leading operators, committed to a significant increase in funding for safer gambling measures, including for treatment.

A £114.3mln of charge in the period, as management chose to close 700 bookie shops due to the regulatory overhaul, led to losses continuing, though the charges were significantly smaller than those a year ago that led to the £819.6mln loss last time.

Related Articles