William Hill set to post growth as gambling industry braces for change

 
Alys Key
Follow Alys
Competitors And Spectators Enjoy The World's Biggest Darts Tournament
William Hill (Source: Getty)

Bookmaker William Hill is expected to report another quarter of growth tomorrow as the gambling industry gears up for government plans for tighter restrictions.

City analysts expect William Hill's retail revenue to grow around three per cent. This income stream could be severely reduced in future by a limit on fixed odds betting terminal stakes, a policy which is currently under consideration by the department for digital, culture, media and sport (DCMS).

But greater clarity on regulation could boost the share price, according to Investec analyst Alistair Ross. He said the probability of a better than expected outcome from the triennial review was now higher, and that William Hill was likely to comment on this in results this week.

Read more: Shares in Jackpotjoy have slipped despite a rise in revenue

Meanwhile the group's online revenue is expected to be up nine per cent, while growth in the US and Australian markets is likely to be up more than 20 per cent. Analysts at Investec said that the group's low hedging on the fight between Floyd Mayweather and Conor McGregor also stood it in good stead against its competitors. The football world cup in 2018 is also expected to give the group a positive outlook for next year.

Investec's report also said that William Hill could now be better placed to engage in M&A, at a time when the gambling industry is poised for a round of consolidation.

Read more: GVC just took another step towards taking over a rival

Related articles