William Hill UK Reports Massive Loss for its 2018 Record
William Hill, the UK Gambling giant, has plunged into the red zone, and it blamed it on the fallout from the notorious introduction of the new max stake on FOBTs of £2, which is expected to be in full effect this month.
William Hill Reported Massive Loss for 2018
The UK Bookmaker reported a total loss of £722 million for 2018, which is not even comparable with its profits of £147 million in 2017. The Revenue increased by two percent, from £1.59 billion to £1.62 billion. The company stated that the massive loss is mainly because of the exceptional charge that is worth £883 million, related to the decision of the government to reduce the max stake on Fixed Odds Betting Terminals from £100 to just £2. The UK Government has announced its plans that have been a long time in the making that aims to tighten the rules surrounding these betting machines that they referred to as the Crack Cocaine of the gambling world, in its effort to face problem gambling. Such a move caused an outcry from the bookmakers who stated that the tighter and new regulation is going to result in a tremendous loss of jobs in the gambling industry, in the thousands.
William Hill Comments on the Losses of 2018
The Chief Executive of the company, Philip Bowcock stated that 2018 had been a decisive and a busy year for everyone in the UK gambling industry. He also added that everyone in the company knows that the next few years are going to require careful investment and navigating, but with a diverse and an experienced leadership teams, and a clear strategy in place, he stated that they are going to capitalize on the chances available to succeed.
Fidelity Personal Investing’s Associate Director, Emma-Lou Montgomery, commented on the situation by saying that William Hill did not get a winning hand last year, with the new FOBTs cut in the stake, as well as the threat of a ban from the US market. She added, on the other hand, the UK gambling company now understands what it is up against, and it has a clear strategy and a plan to turn into the winner in this situation and double its operational profits by 2023.
William Hill Vows to Go Back to Green by 2023
In the strategy that it outlined for its capital markets in November, it depends on three aspects. These three areas are remodeling the UK retail operations, driving digital growth internationally and in the UK, and growing its business scale in the United States market.
The Chief Executive stated that they started to deliver on their plans of expansion in the US by being one of the first out of the block in all of the US states that have a regulated sports-betting market. He added that the acquisition of Mr. Green is going to support the company in building out of its digital business internationally.