GAMBLING HURDLES
William Hill issues earnings warning as online and retail sales take a hit
BETTING GIANT William Hill has warned over full-year earnings as regulatory and tax changes hit its online growth and amid ongoing tough conditions for its high street betting shops.
Shares fell after the group said full-year operating profit is now expected to be in the range of £225m to £245m.
It reported underlying operating profits of £291.3m for 2017.
William Hill, which employs 1,300 people in Leeds, said regulatory and tax changes would reduce online profits by £20m in 2018 and a further £25m in 2019.
But it said net effect would be helped by an otherwise strong underlying performance in online gambling – with accounts up 11 per cent in the year to date – and the division set to return to robust earnings growth from 2020 onwards.
It was also knocked by weaker football and racing results, including three loss-making weeks on horse racing during the summer and customer-friendly football results during the international break in October.
Football and racing margins have been weaker than expected. Philip Bowcock, chief executive of William Hill
This offset a boost from the later stages of the World Cup.
Chief executive Philip Bowcock said: “Looking at the second-half performance so far, we have benefited from the later stages of the World Cup but otherwise football and racing margins have been weaker than expected.”
The company reported a five per cent fall in online net revenues in the second half so far, while retail sales were down four per cent.