17th January 2014
Brokers are calling UK bookmaker William Hill a ‘buy’ on the back of a solid market update reported this morning writes Philip Scott.
In its fourth quarter results, the firm delivered a good end to the year’s trading. Underlying net revenues rose 4%, despite £13m of losses in the second week of 2014, as football results went against them.
In addition its Sportsbook app, which generates £23m in turnover every week, experienced ‘wagered’ activity, rising 38% notes Sheridan Admans investment research manager at The Share Centre.
He says: “Mobile technology is making gambling more accessible and book makers have been expanding their services and what they take bets on, appealing to a wider demographic. Investors will be pleased to see the potential for continued growth in mobile wagers remain strong.”
The recent acquisition of three sports books in the US, to form William Hill US, offers investors the potential of a great growth opportunity should regulations in the region be relaxed while expansion into Australia also remains on track asserts Admans.
However while the company’s shares have endured their fair share of volatility over recent times, rising by 15% over 12 months but falling by 19% over six.
But analysts are upbeat on the FTSE 100 listed firm with brokers at Investec Securities and Deutsche having just reiterated a ‘buy’ recommendation on the stock while Admans believes it presently offers investors an attractive opportunity at its present level of circa 366p per share.
He says: “While we recognise that the sector has been under recent pressure, we are optimistic that the attention it has paid to its corporate structure and strategy in various segments of its operation should start to pay off. We believe the fall in the share price from its peak in August provides a good entry point for investors.”