21st Jan 2019 08:34
LONDON (Alliance News) - William Hill PLC on Monday said it expects a drop in adjusted operating profit for 2018 due to increased expansion costs and due diligence measures.
The FTSE 250-listed betting company said adjusted operating profit for the year is forecast to be around GBP234 million, down 20% from GBP291.3 million reported for 2017.
The figure is however in line with guidance, which forecast adjusted operating profit in the range of GBP225 million to GBP245 million.
The decline in profit is due to the impact of enhanced customer due diligence measures and costs from the group's expansion in the US, William Hill said.
On an underlying basis, operating profit rose by 4% in 2018.
Segmentally, Online saw a strong performance, however challenging UK high street conditions saw a drop in Retail division profits.
In the US, William Hill's investment in expansion has seen the group live in seven states following the legalisation of sports betting.
"2018 was a pivotal year for both William Hill and the wider industry. We now have greater clarity around the key challenges and opportunities for our business. In 2019 we will remodel our Retail offer while building a digitally-led international business, underpinned by a sustainable approach as part of our Nobody Harmed ambition," said Chief Executive Officer Philip Bowcock.
William Hill will publish its annual results on March 1.
In addition, William Hill said it has completed the cash offer for shares in Swedish bookmaker Mr Green & Co AB, and now holds 37.6 million shares, 92% of MRG's entire share capital listed on Nasdaq Stockholm.
William Hill agreed the SEK2.82 billion, about GBP242 million, takeover at the end of October. The offer was at a 49% premium to Mr Green's closing price on Nasdaq Stockholm the day before the offer.
The group has extended the acceptance period for the offer to January 31, to allow shareholders in Mr Green who have not accepted the offer to do so.
"With rapid expansion underway in the US, building on profitable foundations, and the acquisition of Mr Green nearing completion, we look forward to making further progress this year," Bowcock added.
Shares in William Hill were down 3.1% at 170.37 pence early Monday in London.
Related Shares:
WMH.L