William Hill (LON: WMH) has said that it expects profits to be hit by the new lockdown restrictions.
As lockdown eased, the group saw an “encouraging” third quarter and reported a 9% fall in revenue.
The 9% drop in revenue was an improvement to the 32% decrease for the first six months of the year.
Despite footfall increasing and live sport back in action, William Hill said that new restrictions would have a big impact.
“We estimate that, on average, the closure of 100 shops for four weeks would reduce EBITDA [an earnings measure] by circa £2m,” said the group.
Ulrik Bengtsson, the chief executive, commented “We are very pleased with the trading performance of the Group, which has been borne out of the commitment, resilience and hard work of our teams across the business. I could not be prouder of them.
“We have moved the company forward with our relentless focus on our customers, enhancing the competitiveness of our product, and maintaining player safety as one of our highest priorities. We have reinvigorated the leadership team and they, in turn, have empowered their teams to deliver on our plans,” he added.
William Hill is currently undergoing a £2.9bn takeover by the US casino company Caesars. Caesars is paying £2.72 per William Hill share in cash.
Tom Reeg, the chief executive of Caesars, said on the deal: “William Hill’s sports betting expertise will complement Caesars’ current offering, enabling the combined group to better serve our customers in the fast-growing US sports betting and online market.”
William Hill shares (LON: WMH) are steady, trading at 280,00 (1212GMT).
