William Hill Shares Dive 11% On Profit Alert
William Hill shares dive 11% on profit alert
(Close): William Hill shares shut down more than 11% after the bookie alerted on earnings.
It said online trading had actually been struck by harder guideline and "the worst Cheltenham results in current history".
It now anticipates full-year operating profit to be in between ₤ 260m and ₤ 280m, below ₤ 291.4 m in 2015. As an outcome, the FTSE 250 company saw its shares drop almost 40p to 331p.
However, the benchmark FTSE 100 ended flat, up 6.4 points at 6199.1.
Top riser on the FTSE 100 was B&Q owner Kingfisher. Its shares ended up 6% in spite of reporting a 20% drop in full-year earnings to ₤ 512m.
However, when reorganizing costs were removed out, underlying profits were a better-than-expected ₤ 686m.
William Hill stated there were 2 main aspects behind the weaker-than-expected efficiency from its online business.
It said it had seen "an acceleration in the number of time-outs and automatic self-exclusions over recent weeks", procedures which allow punters to stop betting with a bookie.
William Hill stated that while the trend was "still developing, we estimate that, ought to these patterns persist around present levels, the following lower profits will decrease online's profits by ₤ 20-25m in 2016".
Secondly, its revenue margins were lower than expected due to the fact that of European football outcomes and recently's Cheltenham horseracing celebration, where bookmakers were struck by big a number of favourites winning races.
William Hill stated that despite its online problems, the broader group continued "to trade well" and was in line with expectations.
The company also said it remained in "innovative conversations" to invest in Openbet, a gaming software application company.
William Hill shares dive 11% on profit alert
(Close): William Hill shares shut down more than 11% after the bookie alerted on earnings.
It said online trading had actually been struck by harder guideline and "the worst Cheltenham results in current history".
It now anticipates full-year operating profit to be in between ₤ 260m and ₤ 280m, below ₤ 291.4 m in 2015. As an outcome, the FTSE 250 company saw its shares drop almost 40p to 331p.
However, the benchmark FTSE 100 ended flat, up 6.4 points at 6199.1.
Top riser on the FTSE 100 was B&Q owner Kingfisher. Its shares ended up 6% in spite of reporting a 20% drop in full-year earnings to ₤ 512m.
However, when reorganizing costs were removed out, underlying profits were a better-than-expected ₤ 686m.
William Hill stated there were 2 main aspects behind the weaker-than-expected efficiency from its online business.
It said it had seen "an acceleration in the number of time-outs and automatic self-exclusions over recent weeks", procedures which allow punters to stop betting with a bookie.
William Hill stated that while the trend was "still developing, we estimate that, ought to these patterns persist around present levels, the following lower profits will decrease online's profits by ₤ 20-25m in 2016".
Secondly, its revenue margins were lower than expected due to the fact that of European football outcomes and recently's Cheltenham horseracing celebration, where bookmakers were struck by big a number of favourites winning races.
William Hill stated that despite its online problems, the broader group continued "to trade well" and was in line with expectations.
The company also said it remained in "innovative conversations" to invest in Openbet, a gaming software application company.