15th May 2020 09:23
(Alliance News) - William Hill PLC has taken a serious hit from the Covid-19 pandemic, but the bookmaker said Friday it is planning a phased reopening of its stores in the second half of 2020.
In the meantime, its customers have been betting on "table tennis and emerging market football", keeping its online sports wagering business in better shape than William Hill first feared.
Shares in the company were up 8.6% at 115.95 pence each in London.
For the 17 weeks to April 28, total net revenue plunged 27%, with net gaming revenue down 27% and sportbook wagers falling 31%.
In the 10 weeks to March 10 - before national lockdowns in the UK and US came into effect - William Hill's total net revenue slipped 5%, due to a 24% drop in net gaming revenue.
The company said UK retail like-for-like revenue growth during that pre-coronavirus period remained resilient, as customers continued to substitute gaming with sports betting. The business continued to be hurt by the implementation of a GBP2 stake limit by the UK government back in April 2019.
Online UK revenue grew in line with expectations during the same period, William Hill said, adding that the US business continued to perform strongly driven by positive momentum in sportsbook wagering and gross win margin expansion.
However, in the period from March 11 to April 28 - during which the firm has had to close its high street stores - total net revenue cratered 58%. Net gaming revenue was down 33% and sportsbooks wagers fell 70%.
In response to this, William Hill has looked to cut its cash costs, reducing its monthly cash outflow to GBP15 million and has agreed a covenant waiver until 2021.
The FTSE 250-listed bookmaker said: "We conclude the period in a strong financial position with significant headroom. The outstanding amount on the 2020 bond of GBP203 million is scheduled for repayment in June and we have ensured that capital expenditure related to growth opportunities has been preserved, enabling us to press ahead with our plans to grow the US business and continue to develop our product".
William Hill said the bank covenants for its revolving credit facility have been waived for 2020 and reset for 2021.
By Tapan Panchal; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
WMH.L