WILLIAM HILL OPERATING PROFITS DOWN GBP 30 MILLION IN LATEST FULL YEAR REPORT
09th January, 2017 at 08:59:45
Unfavourable football and horse racing results mar the balance sheet.
In a trading update Monday, online and land gambling group William Hill
plc reported that its FY 2016 operating profit was down £ 30 million year-on-year following unfavourable results in football and horse racing.
The company said its full-year operating profit for 2016 would be around £ 260 million, at the bottom end of its guided £ 260 million to £ 280 million range, marking a decline of over £ 30 million from the £ 291.4 million operating profit posted in 2015.
The update notes the failed multi-billion-pound merger negotiation with Canadian online poker giant Amaya in October (see previous reports).
The company issued a profit warning in March this year, less than a week after the end of the Cheltenham Festival, the centrepiece of the horseracing calendar. In November, it said it expected operating profit to be at the higher end of its guidance range, said gross win margins were below expectations.
Whilst imparting some bad news, the trading statement Monday, reeported that underlying trends "remain encouraging" but said gross win margins for the end of the year were below expectations as football and horseracing results went against bookmakers.
"Importantly, the improvements we saw in wagering online and Australia in the second half have continued in recent weeks," said Philip Bowcock, interim CEO. "However, all four divisions saw customer-friendly results at the back end of the year, which translated into profits being £ 20 million below our prior expectations.
"With key underlying trends continuing to be positive, the recent run of sporting results have not changed our confidence in a better performance in 2017."
The company will announce its full final results for 2016 on February 24.
Related News Tags: Horseracing, Bookmakers, Canada, William Hill