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William Hill Australian Market Share Drops
Monday, August 15, 2016 : WILLIAM HILL IN AUSTRALIA LOSING MARKET SHARE
Contributing factor in Hills declining digital fortunes.
A June 2016 presentation to William Hill group executives by the chief exec of the groups Australian operations, Tom Waterhouse, provided the Sydney Morning Herald with material for an article Monday which noted that the Australian operations mainly digital market share has dropped from 17 percent to 12 percent.
Waterhouse flagged the decline, noting that the company was third in the market behind Tabcorp and Sportsbet (a Paddy Power subsidiary) and that the situation was unlikely to change.
He also pointed out that there has been a rise in Australian taxation and regulation which had the potential to further impact revenues and earnings, particularly the growing pressure to halt in-play betting and the possible extension to other provinces of South Australias "point of consumption" tax changes.
Admitting that government regulation was getting a lot tougher, with a consequent rise in the cost of doing business, Waterhouse told his colleagues:
"In terms of racing and sports fees, were seeing a continued upward trend. Australian sports codes have put in turnover tax or gross win tax or a mixture of both."
However, Waterhouse appeared to remain upbeat on overall prospects in Australia, opining:
"In my view, only the biggest will survive, and the competition will get less and less over time, though its very competitive right now."
The newspaper notes that in H1-2016 William Hills Australian operations posted a 10 percent decline in revenue, leading to a 62 percent drop in earnings.
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