William Hill Shares Dive 11% On Profit Alert
William Hill shares dive 11% on revenue alert
(Close): William Hill shares closed down more than 11% after the bookie cautioned on earnings.
It stated online trading had actually been struck by harder regulation and "the worst Cheltenham leads to recent history".
It now anticipates full-year operating profit to be between ₤ 260m and ₤ 280m, down from ₤ 291.4 m in 2015. As a result, the FTSE 250 business 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 completed up 6% regardless of reporting a 20% drop in full-year revenues to ₤ 512m.
However, when reorganizing expenses were removed out, underlying revenues were a better-than-expected ₤ 686m.
William Hill stated there were two primary aspects behind the weaker-than-expected performance from its online service.
It said it had seen "an acceleration in the number of time-outs and automated self-exclusions over recent weeks", steps which allow punters to halt betting with a bookie.
William Hill said that while the trend was "still progressing, we approximate that, must these patterns continue around existing levels, the ensuing lower earnings will decrease online's profits by ₤ 20-25m in 2016".
Secondly, its profit margins were lower than expected because of European football results and recently's Cheltenham horseracing celebration, where bookmakers were struck by large a number of favourites winning races.
William Hill said that regardless of its online issues, the broader group continued "to trade well" and remained in line with expectations.
The business likewise said it was in "advanced conversations" to invest in Openbet, a video gaming software application firm.
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