Amid the regulatory changes in Australia, William Hill is hoping for the US betting market to expand. The UK betting giant has posted a pre-tax loss of £74.6 million (AU$133,16 million) for 2017. This was largely due to the write-down of its Australian operations.
William Hill Australia
Due to the credit betting ban, implemented earlier this month in the country, Australia’s William Hill has been affected negatively.
In turn, this has led to William Hill having to reassess the value of its Australian assets. They reported a £238 million (AU$424,83) impairment charge. This is referred to as a book value reduction, which is a non-cash charge. This, however, is still reported as an expense to reduce net income. Last year, reports for Australia displayed a loss of £221 million (AU$394,49 million), this before tax and interest.
Philip Bowcock, Chief Executive, explains that Australian business has taken in credit bets more than any other bets.
Will William Hill Sell-Off Australia
Last month, William Hill expressed to the UK FTSE 100 that they would consider selling their Australian branch. However, another plan would be to merge with another company that is Australian-facing.
The ban has caused damages to Australia’s businesses. All of this because they decided to prohibit in-play betting, alongside advertising and tax rules that have recently emerged. The additional point of consumption tax that has come into play has made things even more difficult.
Bowcock explains that the Australian market was completely different in 2013. Which according to Jeffrey Harwood, Stifel analyst is very disappointing for acquisition shareholders.
William Hill Better Off in US
Although William Hill may have lost Australia, they are trying to remain hopeful when it comes to the expanding of the US sports betting markets. Operating in excess of 100 sportsbooks as well as betting kiosks in the Nevada state. This includes many off-strip Las Vegas Casinos.
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