William Hill kicks off strategic review of Australia business
Credit betting ban and expected Point of Consumption tax across multiple states prompts review of Australia-facing arm
William Hill today announced it was undertaking a strategic review of its Australia-facing business following a reduction in credit betting volumes and impending additional regulatory pressures.
In a trading update this morning, the London-listed operator said the credit betting ban Down Under and the likely implementation of a Point of Consumption tax in a number of states could impact profitability.
Elsewhere, Hills hailed the benefits of its transformation programme and strong gross win margin after today announcing an expected c11% year-on-year rise in 2017 Group operating profit.
The bookmaker said full-year adjusted operating profit was “ahead of expectations” at c£290m for the 52 weeks ended 26 December 2017.
William Hill did not reveal any additional figures for the year, but claimed its expected profit rise was the result of strong growth in the UK and US, favourable sports results and its Group-wide transformation initiative.
It also said overall net revenue growth in the nine weeks after its trading update on 20 November 2017 was “very strong” and claimed it continued to see strong growth from its Online gaming business.
William Hill CEO, Philip Bowcock, said: “We have delivered a strong result in 2017, reflecting our focus on rejuvenating Online, growing the US and building an attractive omni-channel proposition.
He added: “At the same time, we are continuously improving how we enable customers to gamble responsibly.
“We are excited about the opportunities ahead in 2018 – a World Cup year – with our competitive position reasserted in the UK and with the potential for sports betting to open up in the US.”
The operator’s previous trading update revealed a 6% year-on-year rise in Online revenues in the 17 weeks to 24 October 2017 after double-digit gaming growth helped offset a fall in sportsbook revenues.
William Hill will reveal its full 2017 results on 23 February 2018.
Read EGR’s recent interview with William Hill Online MD, Crispin Nieboer, here.