The shares are down 3.5% today at 363p after reporting “unfavourable results” in Q4 2014 and a poor start to 2015. This is a similar tone taken by other bookies in recent months. However, profits for the company were up 11% year on year and revenues rose by 8%. Given the customer friendly results, these figures are quite encouraging. They have also announced today that they will restructure its Australian businesses to encompass the William Hill brand. This will, no doubt, come at a cost and possibly another reason the share price has had a poor reaction today, but in the longer run, one global brand seems like a smart move.
The bottom line is that revenues are always likely to fluctuate given certain results but in the long run, history has proven the “house always wins”. The key to William Hill’s success will be down to having a smart business model and the ability to continue to grow, which the CEO is confident it can do. Time will tell if he is indeed right.