William Hill Faces Issues as Stakes Reduction Looms

Staff Writer Industry News, William Hill Casino 506

London-listed online gambling operator William Hill, who purchased 4.7% of the exceptional shares of MRG, the brand that owns Mr Green, has unveiled its numbers for the 53 weeks to January 1, 2019.

The results do not seem to be satisfactory, as the betting and gaming operator reported a loss before tax in excess of £720 million. This happened after jotting down the value of its retail business by £900 million ahead of the FOBT (Fixed odds betting terminal) stakes reduction.

Not Everything Is Black and White

By comparison, the group’s net revenue increased year on year to £1.62 billion. However, the adjusted operating profit from already existing operations decreased three percent £266.8 million. The famed bookmaker will nevertheless have to face a charge of £100m a year, as the FOBT maximum stakes reduction, from £100 to £2, enters into force next month. Additionally, closures and job losses are expected across its retail estate.

In 2018, the group dealt with outstanding charges and adjustments £922.1 million, encompassing “£882.8m non-cash impairment to retail following [the government’s] Triennial Review decision leading to statutory loss before tax of £721.9m.”

Wooing Paid off

The £242 million deal with MRG Group saved the day with a net revenue increase of 6%, as well as the good news coming from the United States, where the operator enjoyed 42% net revenue and 91% adjusted operating profit growth in the same period. As a result, the bookie revels in a 34% market share by revenue across all 7 states regulated for betting.

Philip Bowcock, William Hill CEO, stated that 2018 had been a “busy and decisive year for William Hill”.

According to Mr. Bowcock, key regulatory decisions in the United Kingdom gave the bookmaker the clarity it needed for a new five-year strategy and goals to double profits by 2023.

Still Going Strong

“We have three businesses at different stages, with online growth in the UK and diversifying internationally, retail being remodelled in response to the new £2 stake limit, and rapid expansion in the US sports betting market.” WH CEO stressed that the firm’s partnership with Nobody Harmed on battling gambling addiction played a vital role in WH politics.

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