Today, the British bookmaker William Hill confirmed that it suffered a massive loss of £721.9 million in the previous fiscal year ended on January 1st, 2019. The massive is even more staggering in comparison to the £146.5-million profit before tax it posted in the preceding financial year.
The gambling operator reported a 2% revenue increase on yearly basis, reaching £1.62 billion. The full-year adjusted operating profit generated by the company’s existing operations fell 3% to £266.8 million.
The stiff results come at a time when William Hill was hit by ongoing regulatory changes in major markets. Philip Bowcock, the Chief Executive Officer, described 2018 as a “busy and decisive” year for the gambling operator. Mr Bowcock further noted that important regulatory decisions in its domestic market and the US provided the company with more clarity so that it would be able to set a new strategy for the next five years.
The CEO of the British gambling operator also explained that at the time, the company has three businesses at different stages. He noted that its UK retail operations are being significantly remodelled due to the Government’s decision to slash fixed-odds betting terminals’ (FOBTs) maximum stakes from £100 to £2. At the same time, the online gambling business in the company’s domestic market and globally, is being on the rise, while its operations in the US are being expanded as a result of further growth of the country’s recently-opened sports betting market.
US Becomes Key Market for William Hill
Previously, William Hill issued a warning that its profit would probably suffer the negative effects of a non-cash impairment charge estimated to £883 million. The company took the charge because of the Government’s reduction of the FOBTs maximum stake, which is set to be slashed from £100 to £2 in April 2019.
Its high-street trading operations suffered a 2% decline to what William Hill called a “resilient” performance, in spite of its plans to shut up to 900 retail betting shops due to regulatory changes in its domestic market. On the other hand, William Hill joined a number of other British gambling companies which set foot in the US newly-opened sports betting sector.
The US seems to be turning into a key market for the group, especially at a time when the operator has a clear advantage over his opponents. William Hill’s successful performance in the US is expected to help it offset the negative impact which new FOBT maximum stake limits would have on the business. Still, the second quarter of the current fiscal year is expected to be hard.
The company further revealed plans to expand its online gambling offering in 2019, sharing an 11% increase of its operating profit before it was hit by stricter legislation regarding customer due diligence online. The British gambling operator added to its assets by acquiring the digital betting company Mr Green in a deal worth approximately £424 million.
- Author
Olivia Cole
