William Hill announces share buyback

William Hill saw a decrease in revenues but announced it is pursuing a £200m share buyback programme in 2016

William Hill announces share buyback

As William Hill reports its final results Ian Forrest, investment research analyst at The Share Centre, explains what they mean for investors.

“In its full year results reported this morning, bookmaker William Hill said full year revenue had slipped by 1% with operating profit falling 22%, both just shy of market expectations.

“The group said it had been hit by increased taxes on its UK online and retail units. However, and most importantly, shareholders should be pleased with William Hill’s review of its priorities.

“It intends to remain focused on strengthening its balance sheet and generating good cash flow which should allow it to pursue a £200m share buyback programme in 2016.

“Furthermore, investors should appreciate that the company also announced that it will be increasing its dividend pay-out ratio from 40% to 50%.

“William Hill continues to deliver a strong return on capital employed and as a result, we continue to recommend William Hill as a ‘buy’ for medium risk investors with a balanced portfolio.

“Growth in its mobile and online operations and selective international expansion should provide regional, regulatory and economic diversification, while expanding its services to appeal to a wider demographic.”

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