William Hill Reports Weaker-than-Expected Online Performance
UK-based online bookmaker, William Hill, has reported lower-than-expected online performance for the year up until March 20, 2016. It has suggested that this drop may negatively impact its full-year profits.
The weak online performance may be attributed to two factors, according to the bookmaker – a decrease in gross win margins for online, as well as an increase in the number of time-outs and automatic self-exclusions in the past few weeks. Gross win margins were reported to be 1.9 percent lower than the expected 6.2 percent because of European football results and the worst results William Hill has experienced in recent history at the Cheltenham Festival UK horse racing event. Time-outs and automatic self-exclusions allow customers to opt out of gambling and this has impacted the company’s online business.
William Hill has reported that the remainder of their group continues to perform strongly and is in line with overall expectations. They are expecting to report operating profit for the full year of between £260 million and £280 million.
“Today’s statement reflects the combined effect of our assessment of the impact of recent regulatory changes and unfavourable sporting results including the worst results at Cheltenham in our recent history,” stated James Henderson, chief executive at William Hill.
“We are also experiencing softer UK growth as a consequence of acquiring lower value customers. While the rest of the group is performing in line with our expectations, we continue to focus on improving online’s performance, so that we can, once again, outperform the market.”
William Hill has been focusing on its strategic priorities which it identified together with Crispin Nieboer, who they appointed as interim managing director in January. In addition they revealed they have been in talks with a partner that may lead to a deal.
April 16, 2017