Economy

Betting on a William Hill stock price recovery?

Betting on a William Hill stock price recovery?”

In an announcement on Friday, William Hill (LON: WMH) pulled its financial guidance citing the rising Coronavirus uncertainty.

The FTSE 250-listed group said its actions to mitigate the effects of coronavirus on the business means it is performing ahead of the initial scenario of £100mln-£110mln underlying losses, which included most sports remaining cancelled until the autumn.

William Hill, the betting and gaming company, reported that net revenue declined 57% on year in the "Coronavirus-impacted" period from March 11 to April 28.

Football accounts for about half of online United Kingdom sports betting, while horseracing contributes almost a third of it. Sports wagers were down 70% and gaming revenue was down 33%.

"We are planning for a staged opening of the United Kingdom retail estate in the second half of 2020 and we are carefully monitoring developments across the U.S. in the nine states where we have retail activities", the company said on Friday.

William Hill CEO Ulrik Bengtsson has explained: "William Hill has overcome many challenges in its 86-year history, and I am exceptionally proud of the team and their response to the COVID-19 pandemic". We have worked hard to protect them, and in turn they have done the same for our customers.

More news: Justin Bieber Reveals He Wishes He Saved Himself For Marriage - Here’s Why!

He added that the group took measures to minimize costs, such as renegotiating with suppliers, cancelling executive bonuses and pay rises, and suspending its dividend to shareholders.

William Hill has said it expects to miss out on core earnings of up to £15m (€16.8m/$18.2m) for each month its shops are closed - though this is half the company's initial estimate.

Retail betting locations in the United States and United Kingdom remain shut for the most part. "We are taking care of our teams, securing as many employment opportunities as possible and we are ready to power up the business as soon as Covid-19 restrictions permit".

Bengtsson also said that, thanks to the net debt covenant, William Hill has sufficient strength in its balance sheet. "We are developing products that we are proud of and that will improve William Hill's competitiveness for the long term".

"A key plank of our valuation is the USA business where the process of opening more states to sports betting continues, and it appears that Eldorado, William Hill's U.S. partner, will continue with its acquisition of Caesars, which should give William Hill access to more states and casinos in the future", the analysts said.



Like this

loading...
loading...

Latest


17 May 2020
Coronavirus vaccine: Macaque monkey trial offers hope
They were then exposed to higher doses of the virus, and the vaccine seemed to protect the lungs from the virus, but not the nose. The preliminary findings also indicated that the " ChAdOx1 nCoV-19" vaccine has been effective in preventing damage to the lungs.

17 May 2020
Chinese envoy says U.S. undermining global economy, virus fight
According to him, China's most skilled hackers are increasing cyber attacks on America to steal this research. It said it was investigating digital break-ins at USA organizations by China-linked cyber actors.

17 May 2020
Michigan Rep. Justin Amash ends his Libertarian bid for White House
The third-party Libertarian candidate noted that "this environment presents extraordinary challenges". Amash would have faced almost impossible odds of winning the presidency. "Thank you my friend".

17 May 2020
Coronavirus: Trudeau tight-tipped on possible support for Air Canada, other airlines
Air Canada did not respond directly to questions about whether it would drop the wage subsidy, which Ottawa recently extended through August.

17 May 2020
China's ambassador to Israel found dead in Tel Aviv home
His unexplained death came just days after he criticized comments from US Secretary of State Mike Pompeo. Du arrived in Israel in February to hold the position of ambassador.

17 May 2020
Obama: Leaders 'aren't even pretending to be in charge'
The event will honor the 27,000 students graduating from 78 historically black colleges and universities. "The timing is not ideal", Obama said according to the Washington Post .

17 May 2020
Cyclonic storm over Bay of Bengal today
It is very likely to recurve north-northeastwards thereafter towards West Bengal coast from May 18 to 20, he said. The Indian Coast Guard (ICG) has also prepared itself for maritime search and rescue operations.

17 May 2020
China's Factory Output Posts First Increase For 2020 But Consumption Still Weak
Many Chinese factories are grappling with slashed or canceled overseas orders after reopening as global demand has remained tepid. Earlier this week, data showed producer prices falling at their sharpest pace in four years, as industrial demand weakened.

17 May 2020
Teaching unions to work with Government on re-opening of schools
The position of Ms Longfield was that the United Kingdom needs to begin sending children back to school instead of relying on a vaccine for coronavirus which may never arrive.

17 May 2020
Coronavirus: Rory McIlroy critical of US president Donald Trump
The pandemic has claimed the lives of more than 86,000 people in the United States, according to Johns Hopkins University. Trump has played with several current and former pro golfers, including Tiger Woods , Jack Nicklaus, 2016 U.S.