Business Bulletin 26 Feb 2017
[vc_row][vc_column][vc_column_text]William Hill are looking to put a challenging 2016 behind them but there is still no confirmation of who will take them forward in 2017.
There had been speculation that interim chief executive Philip Bowcock would be named as the permanent successor to James Henderson when the bookmaker unveiled their final results for 2016 on Friday but no announcement was forthcoming.
Chairman Gareth Davis did, however, say there would be news in “a few weeks’ time”.
Hills had warned last month that unfavourable racing and football results meant profits would be at the bottom end of their forecast range, and so it proved with operating profit down ten per cent at £261.5 million from revenues of £1.6 billion, up one per cent.
The company’s online operation was the subject of a great deal of attention last year, by the end of which net revenue was down three per cent and operating profit down 20 per cent.
However, Hills said this year the trends across all divisions were positive, including in online, with UK sportsbook wagering up ten per cent and UK gaming net revenue up eight per cent.
Bowcock said: “Overall I think the business is in a much stronger position than 12 months ago. A lot has been achieved, especially in the online division.
“The sportsbook has returned to growth in the first seven weeks of this year and the reason for that is I think we have got a far better customer product now than 12 months ago.
“It’s early days, ten per cent growth in the first seven weeks does not make a year, but I’d rather be in this position than the position we were in last year. I think we’ve got some momentum.”
Davis, who revealed in the bookmaker’s annual report that he would look to step down at next year’s annual meeting, did not confirm Bowcock as chief executive.
However he said: “I’m pleased to say we’re now entering the final stages and expect to complete an announcement in a few weeks’ time.”
Hills’ share price rose on the back of the result and closed up 6.6p at 268.5p.
Also reporting last week was online gambling technology company Playtech.
Revenues were up 12 per cent to €708.6m, while ebitda (earnings before interest, taxation, depreciation and amortisation) rose by 32 per cent to €302.2m.
Racecourses look to control pool betting
In their most serious statement of intent to date, Britain’s racecourses have said they wanted to ensure tracks “will have full control of their on-course pool betting operation” from next year.
However Betfred boss Fred Done, who bought the Tote for £265 million in 2011, described the racecourse plans as “economic madness”.
The tracks’ announcement is the first public statement from the “project steering board” which has been examining the options for pool betting within British racing.
As part of that it has appointed betting industry veteran Neil Goulden as chairman designate for a racecourse-run pool operation once Betfred’s exclusive licence runs out in July 2018.
The board represents a range of – but not all – independent racecourses and the two major racecourse groups – Arena Racing Company and Jockey Club Racecourses.
Goulden said: “I hope my experience can assist British racing in developing its thinking on pool betting so that it can grow to the benefit of British racing and all its customers.”
He added: “We are very open to talking to Fred [Done] about how we might be able to work together for the mutual benefit of racing and Betfred.”
However Done delivered a withering verdict on the plans.
He said: “Whoever they appointed for that job is going to have their work cut out to make a success of it. That’s not having a go at Neil at all, but I just don’t see how two totes can survive. I don’t know where the liquidity is going to come from.
“The reality is the business that is taken on racecourses is win and place. Off course more than 90 per cent is in the exotics – the Jackpot, the Placepot, the Scoop6, the Exacta, and we have got all those brands already.
“So how do they make it pay? I just don’t know. They’re going to pour £20 million into this. It’s just economic madness is all I can say.”
Commission investigate ‘Piegate’
The strangest story in the industry last week came courtesy of football as the Gambling Commission opened an investigation into a potential breach of betting regulations after Sutton United reserve goalkeeper Wayne Shaw ate a pie during the FA Cup tie with Arsenal.
Before the fifth round match, a bookmaker offered an 8-1 novelty bet that Shaw, who resigned from the club following the incident, would eat a pie on camera.
After Sutton had used all their substitutions and there was no chance the 46-year-old could play a part, he was shown on the BBC, who broadcast the match live, eating a pie while standing by the substitutes bench in the 83rd minute.
Sun Bets, who sponsored the club on the match day, tweeted that it had paid out a “five-figure sum” on the bet.
The Gambling Commission, which licenses and regulates gambling in Britain, is now looking into whether the operator has met its licence requirement, having warned all operators in June last year about the integrity of taking bets on novelty markets.
Richard Watson, Gambling Commission enforcement and intelligence director, said: “Integrity in sport is not a joke and we have opened an investigation to establish exactly what happened.
“As part of that we’ll be looking into any irregularity in the betting market and establishing whether the operator has met its licence requirement to conduct its business with integrity.”
Consolidation continues
Online gaming company 32Red, the sponsor of the King George VI Chase at Kempton, is set to join the same stable as Unibet and Stan James as the wave of consolidation continues in the gambling industry.
Kindred Group are set to pay £176 million for 32Red, one of the first authorised betting partners in British racing, having agreed terms with the firm’s board.
32Red chief executive Ed Ware, who holds a near 23 per cent stake in the company, said: “We have consistently and profitably grown 32Red’s market share in the regulated markets of the UK, and more recently Italy.
“The management team at Kindred have a similar business philosophy to our own and we look forward to joining forces with Kindred and continuing our successful growth within the Kindred Group.”[/vc_column_text][vc_separator][/vc_column][/vc_row][vc_row][vc_column][bsf-info-box icon=”Defaults-envelope-o” icon_size=”32″ pos=”left”]For more information about Racing Post’s B2B services, contact us or browse more of b2b.racingpost.com.[/bsf-info-box][vc_column_text]Racing Post B2B caters for all digital content requirements across web, mobile, tablet and retail. But we are more than just a data provider – we enhance raw data with the best and most recognisable content authored by the biggest names in sports betting. Racing Post B2B offers an unrivalled worldwide content portfolio for bookmakers and media associations. Acknowledged throughout the racing and gaming industries, the Racing Post creates bespoke products suited to your audience that will enable your company to maximise profitability by offering unique data, editorial or multi-media solutions.[/vc_column_text][/vc_column][/vc_row]