At the half-year results last month William Hill (WMH) had its profits wiped out by a £238m exceptional charge relating to the strategic review of its Australian business. So it’s no wonder shareholders were relieved when management announced the division would be sold to CrownBet Holdings for A$300m (£169m) enterprise value. The proceeds from the deal will be used to pay down debt and invest in the remaining business.
The strategic review was initiated in January after concerns had grown over how profitable the Australian division could continue to be given the regulatory environment in the country. The ban on credit betting, which had accounted for 30 per cent of wagers, came into effect in February after it was originally announced in September last year. Some states have also begun to implement a point of consumption tax on the bookies for punters’ losses. Analysts at Stifel said they are both “relieved and pleased” that the business had been sold for a good price.
