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Friday 23 October 2015 08.31 BST
Last modified on Friday 23 October 2015 08.42 BST
William Hill has warned that its annual profits will range near the bottom of City forecasts after unfavourable horse racing results helped send the bookmaker’s profit down by 39% in the third quarter.
In a trading update, Britain’s biggest bookie said weak sporting results affected its UK retail, US and Australian businesses in the three months to the end of September. William Hill said football results were good but revenues were affected as too many favourites won horse races.
Trading was also hit by falling revenues in “non-core” markets for online gambling, such as Portugal.
William Hill said results a year earlier were flattered by betting on the Fifa World Cup and that it had paid out an extra £23m in UK gambling duties. As a result, group net revenue fell by 9% and operating profit dropped by 39%.
James Henderson, William Hill’s chief executive, said: “Whilst good operating cost discipline has partially offset the weaker than expected results and non-core market impacts, the board now expects full-year operating profit to be around the bottom of the analyst consensus range.”
Analysts’ forecasts for operating profit in the year to the end of December ranged from £290.9m to £312.1m. The equivalent figure last year was £372.2m, suggesting that profit will fall by about 20%.
The company’s shares, down by about 20% since late May, fell by almost 6% to 326p.
William Hill has had a series of weak trading periods caused by unfavourable sporting results this year. In January it suffered its worst ever week when a string of football matches went in favour of punters.
William Hill has 2,360 betting shops in the UK, making it the country’s biggest bookmaker, but its leading position is under threat from the mergers of Gala Coral with Ladbrokes and Paddy Power with Betfair.
UK bookies are also feeling the effects of higher taxes on betting and gaming. All bets placed online in the UK are now subject to a 15% point of consumption tax designed to raise £300m a year for the Treasury.
Henderson said the company’s underlying performance was solid, with growth in its main markets of the UK, Spain and Italy.
Last modified on Friday 23 October 2015 08.42 BST
William Hill has warned that its annual profits will range near the bottom of City forecasts after unfavourable horse racing results helped send the bookmaker’s profit down by 39% in the third quarter.
In a trading update, Britain’s biggest bookie said weak sporting results affected its UK retail, US and Australian businesses in the three months to the end of September. William Hill said football results were good but revenues were affected as too many favourites won horse races.
Trading was also hit by falling revenues in “non-core” markets for online gambling, such as Portugal.
William Hill said results a year earlier were flattered by betting on the Fifa World Cup and that it had paid out an extra £23m in UK gambling duties. As a result, group net revenue fell by 9% and operating profit dropped by 39%.
James Henderson, William Hill’s chief executive, said: “Whilst good operating cost discipline has partially offset the weaker than expected results and non-core market impacts, the board now expects full-year operating profit to be around the bottom of the analyst consensus range.”
Analysts’ forecasts for operating profit in the year to the end of December ranged from £290.9m to £312.1m. The equivalent figure last year was £372.2m, suggesting that profit will fall by about 20%.
The company’s shares, down by about 20% since late May, fell by almost 6% to 326p.
William Hill has had a series of weak trading periods caused by unfavourable sporting results this year. In January it suffered its worst ever week when a string of football matches went in favour of punters.
William Hill has 2,360 betting shops in the UK, making it the country’s biggest bookmaker, but its leading position is under threat from the mergers of Gala Coral with Ladbrokes and Paddy Power with Betfair.
UK bookies are also feeling the effects of higher taxes on betting and gaming. All bets placed online in the UK are now subject to a 15% point of consumption tax designed to raise £300m a year for the Treasury.
Henderson said the company’s underlying performance was solid, with growth in its main markets of the UK, Spain and Italy.
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Replies: 13
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This is good news.
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It's sort of good news but they usually try and take it out on racing when they have bad results,,,
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Yes it has nothing to do with unfavourable racing results
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On 2 April, we implemented the ‘£50 journey’, which applies when customers play on machines
between the £50 and £100 maximum stake levels. In the first instance, we saw a significant proportion of customers reduce their staking below the £50 threshold. We are continuing to engage actively with customers to manage the implementation of the £50 journey, including adopting our new ‘Linked’ gaming machine card. Gaming machine gross win was up 1% in the first quarter but down 3% in the second quarter, 2% down excluding the World Cup period. This implies a c3-4% decline in machines gross win run rate as a result of the implementation and we now expect a c£5-10m impact in H2 versus previous internal operating profit forecasts. Above taken from their statement. I assume the bit I have underlined is a manifestation of their "responsible gambling" initiative. Regulations implemented that have the immediate effect of reducing stakes on the machines but hey ho we'll help you get 'em stakes back up to a ton! |
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stupid excuse, basically said punters placed a bet and won
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they forgot to mention the negative impact on their profits due to the growing influence of the dixon brothers
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worst bookmaker on the high street all the action on the one screen they cant even show two races if theres a clash, there for mug punters virtual racing every 3 minutes most shops are decades behind their rivals a company sinking very fast.
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Too many favourites winning?! What a load of rubbish. Does anyone have figures for fav win %'s month to month this year?
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Amazing how big bookies rely so much on favs for their profits. Ladbrokes football income up because of Chelsea's poor form.
They sound like mug punters. |
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Maybe if they didn't close so many accounts they could manage their liabilities better by taking more money on the other side of these mug plays
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No wonder their profits are going down, I lose on here instead
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breaking news - mugs play wh's fobt's 39% less in third quarter. still won't lay a bet.
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Ted Brogan • October 23, 2015 4:01 PM BST
Too many favourites winning?! What a load of rubbish. Does anyone have figures for fav win %'s month to month this year? October to 23rd 829 races, 294 favs, = 35.46%, Ave ISP 2.71 @ 36.9% Sept 1059 races, 358 favs, = 33.81%, Ave ISP 2.87 @ 34.84% Aug 1157 races, 387 favs, = 33.45%, Ave ISP 2.77 @ 36.1% July 1292 races, 447 favs, = 34.6%, Ave ISP 2.79 @ 35.84% June 1183 races, 440 favs, = 37.19%, Ave ISP 2.78 @ 35.97% Favs stats are ALWAYS consitant but there have been extended winning runs with above average ISP over the past 3 months. However it ALWAYS return back to the mean within max 21 days. |