17th Jan 2014 13:03
LONDON (Alliance News) - Betting company William Hill PLC Friday joined smaller rival Ladbrokes PLC in warning that football results had gone badly against it in the second week of this year, taking some of the sheen off otherwise strong trading results for the final quarter of 2013.
The FTSE100-listed bookmaker warned that it recorded a GBP13 million loss in week two of 2014 after an unusually high number of odds-on favourites won their matches. It said it can't be sure it will make up the loss.
William Hill said it particularly had to pay out on so-called accumulator bets, where punters bet on several games and only get a payout if all the results go in their favour.
William Hill's performance for the fourth quarter of 2013 was better, and it continued to outperform its main rival.
Total net retail revenue was up 6% in the 13 weeks to December 31 compared with a 14 week period the year earlier, or up 13% on an exact 13 week basis. Its online total net revenues rose 6% and 14% over the same comparative periods.
It said it saw 38% more wagered in Sportsbook over the 13 weeks comparison.
For the whole of 2013, William Hill said it expects operating profit to be about GBP334 million on a 16% increase in revenues, up slightly from the operating profit of GBP330.6 million it recorded in 2012.
It expects to book GBP18.6 million in exceptional items, in line with its previous guidance, although the value of its investment property portfolio has fallen GBP1.4 million. In 2012, it booked GBP15 million in exceptional items, including costs associated with a back tax claim settled with the Spanish tax authorities, and the acquisition of three Nevada-based businesses.
FTSE 250-listed rival Ladbrokes had said Thursday that it expects its full-year operating profit to be somewhere in the middle of analysts' current forecasts of between GBP129.8 million and GBP151 million, a slightly wider guidance than the one it gave in November of between GBP138 million to GBP151 million.
Either way, its 2013 operating profit will be significantly lower than the 2012 figure of GBP206.1 million, excluding telephone bets from big-money gamblers its calls "high rollers", and GBP236.1 million including high rollers.
While both betting firms are busy preparing for a much-needed boost from the Brazil World Cup in June, a potential UK crackdown on lucrative gaming machines, called fixed-odd betting terminals, poses a big threat to the gaming industry.
UK MP's are debating stricter regulatory changes for the betting shop roulette machines, which allow bettors to place a GBP100 wager every 20 seconds, reversing the last Labour government's moves to relax gambling laws.
According to the Gambling Commission, there are currently more than 33,000 fixed-odds betting terminals across the UK.
William Hill expects to put out its full results for 2013 on February 28, and Ladbrokes on February 25.
Shares in William Hill were down 2% at 325.20 pence per share Friday afternoon, one of the biggest declines on the blue-chip index. Ladbrokes shares were also trading lower, down 3.3% at 170.20 pence per share, one of the biggest declines on the FTSE250.
Story Updated By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Original Story By Steve McGrath; [email protected]; @SteveMcGrath1
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