William Hill bookmakers share price slumps after low football and racing margins

Posted on: 21st November 2018

It could be a good time to buy William Hill shares which are currently trading at 175p

William Hill share prices rose when it was announced that the United States of America would be opening up for business in the coming years, although they have taken a more recent downturn after a profit warning was issued by one of the world’s leading bookmakers.

Chiefs have warned that profits would be lower than anticipated in 2018, citing tougher regulation although that hasn’t stopped bet365 from continuing its astonishing growth, with William Hill bookmakers board members likely to be held accountable for the group’s stuttering performance.

It is believed that full operating profit will be somewhere between £225m and £245m, with the bookmaker having enjoyed bigger profits of £291m in the previous twelve months.

It appears as though stiffer regulation has been a contributory factor, with chief executive Phillip Bowcock admitting that it’s been difficult thanks to more stringent checks on online customers, although many would argue that this falls into an operator ensuring that their players are gambling responsibly.

Tax changes have also been highlighted as a possible reason for downturn in profits, with profits expected to be down £20m in 2018 and £25m in 2019, with the group hoping that the US opening up will then see profits grow again by 2020.

Chief executive Philip Bowcock said: “Looking at the second half performance so far, we have benefited from the later stages of the World Cup but otherwise football and racing margins have been weaker than expected, including three loss-making weeks on horseracing during the summer and customer-friendly football results during the international break in October.

“Retail continues to be challenged by the wider high street conditions and we have seen gaming as well as sportsbook revenues decline in the period.”

A rosier picture is emerging in the US where Hills have now started trading and it appears that $200m has so far been wagered, with the group’s goal now to operate in every possible state.

“I’m pleased to report that we’ve built on our market leading position in Nevada to make rapid progress in other states as they legalise sports betting, and are the only company to be taking sports bets in the first five states to have regulated,” Bowcock added.

moplay free bet

Bet £10 Get £30

1. Place one bet of at least £10 or more at odds of 1.50 or higher to get 2 x £15 in free bets within one hour of bet settlement. 2. Free bets will expire 7 days from issue. 3. The following bets will not count as qualifying bets: bets placed at starting price (SP), tricast, forecast and system bets. 4. You must opt in to receive this promotion by clicking ‘Accept’ when prompted by the pop up which appears after your qualifying bet has settled. 5. Available to UK residents and over 18s only.

Join Now

Bet £10 Get £30

New UK & Ireland customers only. Min Deposit: £10. First deposit matched up to £30. 1 x wagering at odds of 1.75+ to unlock Free Bet. Credit Card, Debit Card & PayPal deposits only.

Join Now
ladbrokes bookmakers

Bet £5 Get £20

18+ New UK+IRE customers. Paypal and certain deposit types and bet types excluded. Min £5 bet within 14 days of account reg at min odds 1/2 = 4 x £5 free bets. Free bets valid for 4 days on sports, stake not returned, restrictions apply. T&Cs apply.

Join Now

Bet £10 Get £30 Free Bets

New customers only – Minimum deposit of £10 using deposit code 30F - A qualifying bet is a ‘real money’ stake of at least £10 placed on any sports market - Minimum odds of 1/2 (1.5) - Free bets credited upon qualifying bet settlement and expire after 7 days - Free bet stakes not included in returns

Join Now
betvictor free bet

Bet £5 Get £30

Deposit and bet £5 qualifying bet within 7 days, min odds 2.00. Receive 2 x £10 Free Sports Bets, Plus £10 Casino Bonus. Credit/Debit Card deposits only. 18+ T&Cs apply

Join Now
william hill bookmakers

Bet £10 Get £30

New Online Customers Only. Min £10 stake, win only, min odds 1/2. Free Bet/Payment method/Country Restrictions apply. 18+ T&Cs apply

Join Now