William Hill Slides Due To Football Results, Crackdown On Australian Credit Betting

A "poor run of football results and an expected crackdown on credit betting in Australia" sent bookmaker William Hill "sliding on Monday," according to Bryce Elder of the FINANCIAL TIMES. Australia's government last week "set out proposals to ban bookmakers' loans and shut down existing credit accounts, which are expected to pass into law when parliament's summer recess ends in August." William Hill's "fast-growing Australian business" takes about 30% of net revenue and 25% of net profit from credit wagers, so the "hit to group profit" will be about £17M ($22M), financial advisor Stifel estimated. Half-year earnings are "likely to be down" 7% year-on-year as a "weak gross win margin and higher marketing costs offset progress made online," brokerage Numis added. Separately, William Hill and Ladbrokes were understood to be subject to Competition & Markets Authority enforcement action over "possible breaches of consumer law." William Hill closed 4.4% weaker at 262.4p and Ladbrokes was down 0.7% to 113.7p (FT, 6/26).