William Hill's Unlucky QuarterPublished November 8, 2015 by Sol FH
Record profits by punters in the UK and Australia has William Hill predicting lowest estimate in years.
It looks as though online sportsbook William Hill will have a far less profitable years than they originally assumed during the first few quarters. Recently, punters from the UK to Australia have been getting lucky after making bets on Horse Racing, American Football and Soccer and winning.
Punters may be happy with the outcome but William Hill is definitely not as happy, even though they like it when their players win. The other factor which has led to William Hill's 7.9% share drop is the $35 million increase in UK duties which is new this year. “We always expected a tough quarter, but clearly it’s been a lot tougher than anticipated,” said Nick Batram, analyst at Peel Hunt in London. Mr. Batram recently changed his recommendation on Will Hill stock from hold to buy due to the drop in shares. Now would be the time for people to buy shares as William Hill is sure to rise again soon.
William Hill is not the only company that is struggling this year, as Ladbrokes is also reporting a 57% drop in third quarter profits. As of a few days ago, William Hill shares were worth 319.6 pence, which is a huge drop for the UK mega brand.
The biggest loss came in Australia on October 2 as all nine of the favorites in Horse Racing won and Will Hill had to pay out millions in winnings. The NFL games were also a thorn in their side as the favorites have continued to win without much competition from the underdogs.
William Hill Unshaken
A brand like William Hill will not let this stop them from providing their impeccable services or competitive odds. The truth is the brand has never been as popular even with new competition online. They will most likely offer even bigger odds for underdog bets and create new ways for punters to get in on their favorite sports action.