William Hill US expects to break-even in 2019
Group revises initial projection of up to $20m loss for the year and hails disciplined investment
William Hill is expecting its US business to break-even in 2019 after estimating an initial revenue loss of up to $20m for the year.
Group CEO Ulrik Bengtsson attributed the updated projection to “wagering growth and disciplined investment.”
“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,” Bengtsson said.
“The group has delivered a strong operating performance, ahead of our expectations and against a challenging regulatory backdrop.”
The overall William Hill business is projected to deliver an operated profit of $185.6m to $192m, compared with the guide of $169m estimated in January 2019.
In August last year the group posted a 33% drop in operating profits for the first half of the year, attributing the losses in part to US expansion.
It purchased the sportsbook assets of CG Technology in November 2019 in a deal that provided access to six Nevada-based sportsbooks.
At the time, Bengtsson said the acquisition was a case of consolidation as it sought to grow its position in Nevada.
The operator’s US business pretty much broke even in FY18 as expansion costs were offset by profits from the existing business.