Profits hit as results go against bookmaker

William Hill has taken a £20 million hit after a string of “customer friendly” results last month.

As a result, the high street bookmaker said full-year operating profit for 2016 would come in at the bottom end of forecast at around £260m.

It said unfavourable horseracing and football results hit its win margins last month.

“Importantly, the improvements we saw in wagering in online and Australia in the second half have continued in recent weeks,” interim chief executive Philip Bowcock said.

“However, all four divisions saw customer-friendly results at the back end of the year, which translated into profits being circa £20m below our prior expectations.

“With key underlying trends continu- ing to be positive, the recent run of sporting results have not changed our confidence in a better performance in 2017.”

Premier league leaders Chelsea’s consecutive string of victories last month saw punters cash in on bookmakers’ woes.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “We can forgive a run of poor sporting results.

“An unbroken run of Chelsea wins in the period, for example, won’t have been enjoyable for any of the bookies and is clearly beyond William Hill’s control.”

William Hill and Canadian poker firm Amaya called time on talks over a potential £4.6 billion merger in October after feedback from shareholders.

“The bigger problem is that while performance in the online division is improving, it’s doing so at a snail’s pace,” Mr Hyett said.

“With the distracting merger talks of last year now behind it, the group seems to be knuckling down to the job of sorting out the core business.

“Hopefully, the renewed focus and improving trends will start to deliver some results.”

A fixed odds betting terminal at a branch of William Hill.