William Hill disappoints again as online remains in doghouse

William Hill assured that trading has stabilised since its shock profit warning in March, but a mixed trading update did not impress analysts and investors much.

In the 17 weeks to 26 April, the bookmaker said trading remained in line with its full-year operating profit guidance of £260-280m if gross win margins remain at normal levels.

But the overall picture is decidedly mixed, with net revenue for the group down 3%, online revenue down 11% and online wagering in core markets growing slower than expected, and Australia net revenue down 22%.

On the upside, retail was ahead by 2% and the US was up 46%.

"It has been a tough start to the year in online, which is being impacted by both regulatory change and a gross win margin below normalised levels for the period due to a disappointing Cheltenham festival and unfavourable European football results," said chief executive James Henderson.

He said Crispin Nieboer had now been appointed managing director of online, having held the position on an interim basis since January and made good progress in addressing areas of under-performance.

In retail Henderson pointed to improved gaming growth and that the roll-out of self-service betting terminals was on track to be complete before the EUROs.

Though Australia was down, he said it was "showing benefits of our improved offering and strengthening brand in the market".

Broker Shore Capital said it was "a pretty disappointing backdrop" and saw "little to get encouraged about until the group starts to generate material growth in NGR in the UK and Australian markets".

Analyst Greg Johnson said UK amounts wagered online falling by 2% and gaming net revenues down 5% suggested market share losses.

"In Australia, amounts wagered were ahead by 10%, offset by poor horseracing results, but remains where we would hope given the repositioning."