William Hill looking to raise about GBP 245 million

Post Views: 690

As it looks to reopen its betting shops, the British bookmaker has launched a cash call to raise GBP 245 million (USD 309 M). The company said it has reduced its monthly cash outflow, has unrestricted liquidity in excess of 500 million pounds and expects to generate positive cash flow from its operations in the second half of the year.

William Hill announced on Tuesday it was seeking to raise about 245 million pounds (USD 309 M) through an issue of nearly one-fifth of its share capital.

“During March and April customers continued to place bets on alternative products such as table tennis…that activity has remained high alongside the return of horseracing and football,”

– the UK-based company said when announcing that it is also looking to reopen its betting shops after coronavirus-related closures.

The company said it has reduced its monthly cash outflow, has unrestricted liquidity in excess of 500 million pounds, and expects to generate positive cash flow from its operations in the second half of the year.

Total net revenue growth dropped 50% in the six weeks to June 9, compared with a 57% plunge in the preceding seven weeks as online sports wagers improved significantly, Reuters reported.

But the company expects the level of sports betting activity to likely remain uncertain for the rest of 2020 and into 2021.

Europe’s bookmakers were already under pressure before the coronavirus outbreak from rising taxes and a crackdown in Britain which included limits on the size of stakes on gaming machines in betting shops.

Bookmakers have, however, seen opportunities in the opening up of U.S. markets in the past year.

Source: yogonet.com