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William Hill Announces 15% Profit Fall in 2018
January 22, 2019 Tamara Vucinic
William Hill, a world-famous UK gambling operator and bookmaker, announced a 15% drop in profits in 2018 compared to 2017 annual results.
A Drop in Revenue
The company made this statement after a thorough analysis of the past 53 weeks, but the final and official report will be issued on March 1.
The expected profit of William Hill gambling services will come up to around £234 million…
…which is about 15% less than the amount issued in their annual, 2017 report.
“2018 was a pivotal year for both William Hill and the wider industry. We now have greater clarity around the key challenges and opportunities for our business. In 2019 we will remodel our retail offer while building a digitally-led international business,” William Hills CEO, Philip Bowcock, explained.
Hit by the Government
For the decrease in their profit this year, the UK bookmaker giant is blaming the tough conditions on the high street market, strict UK regulations and the expensive expansion of the company in the US.
The government’s repression of fixed odds betting terminals (FOBT) that limit maximum stake to from £100…
…to just £2 will, among other companies, also influence Hill. It is speculated that the company might even have to close down some percentage of their shops due to new regulations.
But, the directorate hopes that their new remodeling plan for 2019 and becoming more digital-oriented business will help with the profit and the overall future of the company.
Growing in the USA
On the other hand, even though the expansion costs the company a lot of money, its US branch saw massive growth in the past year. The company expanded throughout the state of Nevada…
…and an additional seven US states. It now operates 107 sportsbooks in Nevada only.
This gambling magnate was one of the first companies that jumped into the business when the US Supreme court overturned the federal ban that prevented sports betting from 1992. Hill signed a partnership with 190 casinos across Nevada, and various casinos in Mississippi, Pennsylvania, Rhode Island, and West Virginia.
Its final venture in the US is partnering up with Prairie Meadows Racetrack & Casino that will kick off as soon as the legislation gets approval.
Reducing the UK Exposure
William Hill plans on reducing its exposure on the Britain market by purchasing famous Swedish company, Mr. Green (MRG). Besides spreading the influence on other countries, the acquisition of MRG would also have a big economic impact on the company. Another reason why it is interested in MRG…
…is the immense growth potential this Swedish company has shown. A deal settlement is expected to commence by the end of January, but Hill said nothing about when the deal will be finalized.
“If for any reason the review by the competition authorities would take longer than reasonably expected, and the necessary approvals are therefore not obtained before the expiry of the acceptance period, the acceptance period will be extended,” Mr. Bowcock said.
Source:
“William Hill’s profit to fall 15% on retail woes, US expansion costs“, calvinayre.com, January 21, 2019.
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The UK gambling market is really going through some serious problems. No wonder the companies try everything they can to get out of the gutter.