William Hill to beat profit expectations after Q4 sportsbook margin boost

William Hill’s full-year profit could outperform market expectations by 12% according to the London-listed operator’s January trading update.

The firm is guiding 2019 adjusted operating profit of between £143m-£148m and ahead of management expectations, although figures were boosted by a strong sportsbook margin in Q4.

Favourable sporting results throughout December improved retail performance to approximately £10m ahead of the £50m-£70m consensus, which helped mask a mixed period for Online, including weak performance in UK online gaming.

Hills also expects to break-even in the US in 2019, where wagering growth was combined with a “disciplined” investment.

William Hill CEO Ulrik Bengtsson said: “The Group has delivered a strong operating performance, ahead of our expectations and against a challenging regulatory backdrop.

“We made good progress on a number of fronts, including our Retail business, Online and in the US, enabling us to deliver on our long-term strategic ambitions.

“We look forward to building on these efforts in 2020 with a strong focus on customer, team and execution,” he added.

https://twitter.com/UlrikBengtsson/status/1216432019737063425?s=20

Numis analyst Richard Stuber said of the results: “With the upgrade due to non-recurring favourable sporting results and “disciplined investment” in the US, this implies performance from its core online division is below expectations.

“Our FY20 forecasts are unchanged,” he added.

William Hill CFO Ruth Prior, who joined the business in 2017, announced her intention to step down today.

She will remain with the operator for a 12-month notice period before returning to the private equity sector with Element Materials Technology. A search for her successor is already underway.

William Hill sold 35 retail betting shops across Northern Ireland and the Isle of Man to Irish bookmaker BoyleSports over the weekend.