William Hill posts revenue increases

As William Hill updates the market Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors.

William Hill posts revenue increases

This morning, bookmaker William Hill reassured the market that it was on track to deliver market expectations for 2017, courtesy of a boost in revenues in its online and US businesses. Indeed, the group noted that the online business had performed particularly well, with UK wagering 14% ahead of last year, even without a major football tournament.

There’s no denying that the sector has been under pressure from politicians and intense competition. This has led to William Hill attempting to cut costs for the year by around £40m. Today, it highlighted that it is continuing to make good progress with this and it is on track to deliver.

Indeed, the group’s chief executive Philip Bowcock commented this morning that this is “supporting reinvestment in its business, including marketing increases in H2 to promote its online services and customer experience”.

The company’s strategic priorities include growing its UK market share, international growth and improving technology. However, it faces two big hurdles which include a decision in the UK on the amount gamblers will be allowed to put in their fixed odds betting terminals as well as conclusions from the US over betting regulations.

If the group can position itself to successfully overcome these, then next year’s FIFA World Cup could give the company, as well as the wider sector, a much need boost.

 

Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest and tax policies may change.

 

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