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WilliamHill Q3 profit dives 39 percent

Friday October 23,2015 : WILLIAM HILL PROFITS TAKE A HAMMERING
 
Lower Australian revenues and UK p.o.c. taxes take a toll as Q3 profit dives 39 percent.
 
Investors used to significant year-on-year improvements in profits at online and land gambling group William Hill plc have a new experience to digest today with the release of the company's not-so-stellar third quarter results.
 
The company reported that a combination of unfavourable horse racing results, lower Australian action and the imposition of a new UK point-of-consumption tax on internet gambling has resulted in a profit plunge of 39 percent in Q3-2015 and a warning that annual profits will likely be toward the low end of City forecasts.
 
In a trading update, Will Hill said weak sporting results affected its UK retail, US and Australian businesses in the three months to the end of September. Horse racing results went against the bookie, although football returns were good.
 
Trading was also hit by falling revenues in “non-core” markets for online gambling, such as Portugal, the company revealed.
 
The new UK point-of-consumption tax in online gambling cost the company GBP 23 million in additional government duties, whilst group net revenue fell by 9 percent, and operating profit plunged 39 percent.
 
Operating profits at its retail division were down 31 percent while online fell 37 percent.
 
CEO James Henderson, said: “Whilst good operating cost discipline has partially offset the weaker than expected results and non-core market impacts, the board now expects full-year operating profit to be around the bottom of the analyst consensus range.”
 
Henderson said that the growth in the online division’s core markets - the UK, Italy and Spain - remains strong for both betting and gaming.
 
Analysts’ forecasts for operating profit in the year to the end of December ranged from GBP 290.9 million to GBP 312.1 million. The equivalent figure last year was GBP 372.2 million, suggesting that annual profit this year will fall by about 20 percent.
 
The company's market-leading position in the UK is under threat from the mergers of Gala Coral with Ladbrokes and Paddy Power with Betfair

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Gambling News :

PokerStars.CZ has launched in the Czech Republic - PokerStars.CZ has launched in the Czech Republic, becoming the first licensed online casino and poker operator under the Czech Republicís new gaming regulation. This follows on from the approval by the Czech State Supervision of Gambling and Lotteries Department.

Luckia Games in Partnership with NYX Gaming Group - NYX will provide Luckia with its open gaming system, NYX OGS, and open platform system, NYX OPS, to support the growth of its established Spanish operation.

Sunbets to Sponsor Sutton United - Online betting operator Sun Bets has inked a one-off sponsorship deal with English association football club Sutton United for its upcoming televised clash against Arsenal FC in the FA Cup fifth round tie.

Time is Money Slot Launches - Set to a catchy tune, Time is Money offers a free spins bonus where all wins are multiplied by up to x12 by a random multiplier, selected from the time traveling clock.

ArenaCube Signs 3 New Deals - Under their strategic partnership, ArenaCube and Kiron will develop and launch a new version of Arena Challenge in 2017. The new version of the game will carry Kironís virtual content.

First Woman to Win a WPT Playground Championship - Besting a field of 380, in the C$3,500 buy-in event, Zajmovic beat Jean-Francois Bouchard in heads up play, pocketed the C$261,000 first prize and a seat in the season ending WPT Tournament of Champions.

NHL Odds: Oilers-Blackhawks at the United Cente - Fans at the United Center will be treated to a potential Western Conference playoff preview this Saturday when the upstart Edmonton Oilers visit the Chicago Blackhawks. The puck drops at 7 PM ET on WGN.

2017 Partypoker.net WPT Playground main event Results - Although she entered the heads up against Jean-Francois Bouchard with a chip deficit, Zajmovic was able to get herself back in the game with some skillful and disciplined playing, eventually overtaking the leader and finally leveraging her chip advantage into a decisive win.

IGT In Deal With Norsk Tipping - International Game Technology has announced a new contract signing which will see it providing interactive casino and Instant Win game libraries and custom games through a remote game server to Norwegian gambling group Norsk Tipping.

ZYNGA POKER ENJOYS IMPRESSIVE GROWTH IN 2016 - By re-focusing on the mobile environment and poker, social gaming giant generates revenue of $741 million - without offering real money games!

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