Bookmaker William Hill hit by fixedodds change

Betting firm William Hill has swung to a half-year loss after taking a hit on UK government plans to cut the maximum stake on fixed-odds betting terminals (FOBTS) to just £2.

The company reported a bottom-line, pre-tax loss of £819.6 million for the six months to 26 June, having reported a profit of £93.1m during the same period last year.

That was against a 3 per cent rise in group net revenue to £802.6m over the half year. Its results were knocked by £915.9m in exceptional charges and adjustments, which included an £882.8m impairment charge on its retail operations.

That was linked to the UK government’s decision to reduce the maximum stake on fixed-odds betting terminals from £100 to £2 – a regulatory change which William Hill said was “unprecedented”.

“Its impact on customer behaviour will not be known until some years after implementation but we currently estimate this could reduce the retail division’s annualised adjusted operating profit following mitigation measures by c£70-£100m,” the company said.

The remaining exceptional charges included restructuring costs from its turnaround programme. Chief executive Philip Bowcock said: “William Hill has performed well during the first half of 2018 and, following major regulatory decisions in the UK and US, we now have greater clarity over the challenges and opportunities that lie before us.”