William Hill Shares Dive 11% On Profit Alert

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William Hill shares dive 11% on profit alert

William Hill shares dive 11% on revenue alert


(Close): William Hill shares shut down more than 11% after the bookmaker cautioned on profits.


It stated online trading had actually been hit by tougher policy and "the worst Cheltenham results in recent history".


It now anticipates full-year operating profit to be in between ₤ 260m and ₤ 280m, below ₤ 291.4 m in 2015. As a result, the FTSE 250 business saw its shares drop almost 40p to 331p.


However, the benchmark FTSE 100 ended flat, up 6.4 points at 6199.1.

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Top riser on the FTSE 100 was B&Q owner Kingfisher. Its shares ended up 6% in spite of reporting a 20% drop in full-year earnings to ₤ 512m.


However, when reorganizing expenses were stripped out, underlying profits were a better-than-expected ₤ 686m.

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William Hill said there were 2 main factors behind the weaker-than-expected performance from its online company.

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It said it had seen "an acceleration in the number of time-outs and automatic self-exclusions over recent weeks", measures which enable punters to halt betting with a bookie.

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William Hill said that while the pattern was "still developing, we approximate that, ought to these trends persist around existing levels, the ensuing lower revenues will lower online's earnings by ₤ 20-25m in 2016".

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Secondly, its earnings margins were lower than anticipated since of European football results and last week's Cheltenham horseracing celebration, where bookmakers were struck by large a number of favourites winning races.

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William Hill said that despite its online problems, the broader group continued "to trade well" and remained in line with expectations.


The company likewise stated it was in "innovative discussions" to buy Openbet, a gaming software application company.

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Sterling weak

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Elsewhere on the London market, shares in Sports Direct were having another bad day, down an even more 5.6% after dropping about 10% on Tuesday.

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Earlier the seller had actually released a declaration saying that it expected full-year hidden profits to be "at or around the bottom" of a previously approximated range. The declaration was issued following comments that founder Mike Ashley made to the Times newspaper on Tuesday.


On the currency markets, the yohaig code pound remained weak after having fallen greatly on Tuesday in the wake of the horror attacks in Brussels, which were seen as increasing the possibility of the UK ballot to leave the EU.


On Wednesday, sterling fell practically 1% against the dollar to $1.4087. Against the euro, it lost 0.4% to EUR1.2623.

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