William Hill Struggling To Keep Up With Competitors Down Under
Australians are known to be amongst the biggest gamblers in the world. Along with such a lucrative market comes intense competition as rival companies fight for market share of the online sports betting market.UK bookmaker William Hill is feeling the pressure down under according to Australian Investment bank UBS and are reportedly been left behind to watch their competitors gain more market share.
The last three quarters show that William Hill has lost ground to rivals Ladbrokes who have reported growth rates of over 50% according to UBS in the online sports betting sector. William Hill on the other hand has seen decrease of 8 percent. This data is interesting as William Hill have recently stated that their US and Australian operations were showing positive momentum for the first four months of 2016.
USB analyst Chris Stevens explained the difficulties William Hill are having in the sports betting sector down under,”The growth in Sportsbet, Ladbrokes and CrownBet over the last three years has intensified competition in the Australian online sportsbetting market, driving William Hill’s market share from 34 percent to just 12 percent (of the digital market), and net revenue flat in 2015 versus 2013 despite the market growing at around 15 percent per year.”
William Hill have already stated that they expect operating profit for 2016 to fall from the £291m of last year to around £260-£280m. Poor online revenues were been blamed for some of the expected losses as CEO James Henderson blamed a disastrous Cheltenham results and well as unfavorable European Football result.