On 9th January William Hill sent out a press release to inform its shareholders of a profit warning. This is the third time this year the operator issue such warning. William Hill profit lost seem to be attributed to “customer-friendly” marketing campaigns but also due to unfavourable results in football and horse racing.
These combined factors lead the online gambling operator to have £20m less profits than anticipated for December and the company shares have dropped by 3%. Following this disappointing financial report Interim Chief Executive Philip Bowcock said “The recent run of sporting results have not changed our confidence in a better performance in 2017,” Meeting the button of the forecasted annual profits is another blow to the operated who is recruiting for a new chief executive. There’s no doubt that William Hill will have a challenging 2017 especially after several competitors have joined forces to intensify the competition for a better share of the British market.
On the flip side of things when an operator report loses this means the players are happy. It sure was the case on 26th December (a long-anticipated day for most football fans’) as 18 of the 20 best-backed teams won. The most impressive win of the day was surely done by a lucky sports book punter as he managed to turned a £20 stake into a whopping £103,000. This impressive win was made possible by backing 11 teams to win. This is the biggest pro-rata payout of the seasons on sports book.
There’s no doubt that a merger is on the horizon for William hill too if they follow the industry trend, PaddyPower merged Betfair and Ladbrokes with Gala Cora. It seems to be waiting for the right opportunity to merge with another giant. Perhaps it’s a difficult choice, for those who remember William Hill pulled out of the acquisition negotiation with Amaya in October 2016. They have also rejected a merger with 888 and Rank Group last year. We will have to wait for 24th February to get the full financial results of the company and predict which avenue the operator will take.