Tue, 06 Mar 2018 | DIVISION SALE
One of the world’s largest betting companies has sold off its Australian business following a crackdown on the country’s gambling laws.
A ban on credit betting – where customers are leant money at an interest rate to use in their betting picks – and a new tax on bookkeepers at the point of consumption in Australia prompted William Hill to undertake a strategic review of its operations in January.
The regulatory changes led the British group to write down the value of its Australian unit by £238 million dollars, however, pushing William Hill into a pre-tax loss of £75 million for 2017.
The ban on credit betting had a particularly detrimental effect as William Hill historically took a higher level of leveraged bets from its Australian customers than many of its rivals.
Selling off the firm’s Australian business was described by the firm’s chief executive, Philip Bowcock, as an opportunity for the betting agent to refocus on its UK online and US businesses.
He explained: “The disposal follows a strategic review of the Business, launched in January after its profitability came under increased pressure due to the recent credit betting ban and the likely introduction of a Point of Consumption tax.”
William Hill also announced it had identified a buyer in fellow Australian sports betting business CrownBet which, along with a group of shareholders related to CrownBet founder Matthew Trip, pulled together a A$300 million (£169 million) bid for the division.
The Australian unit recorded revenues of A$201 million in 2017, resulting in earnings of around A$47 million dollars, before the write-down was announced. The firm also faced additional costs thanks to a group-wide transformation programme that ended up being more expensive than anticipated.
This is a rare opportunity to acquire a distinguished multi-functional hospitality business located in Aberdeen, offering significant potential for growth and expansion.
Situated in a prime trading location within the heart of the City of Worcester, yet overlooking the River Severn. The historic Grade II listed property, which predates the 1600's was re-built and later extended during Georgian times when it became th...
This is an exciting opportunity to acquire two stunning hotels, operated as a single business, featuring 45 bedrooms along the popular NC500 route.
FREEHOLD
17
|
May
|
Poundland set for one pound sale as Gordon Brothers emerges as frontrunner | BUSINESS SALE
Discount retailer Poundland is expected to be sold for a nom...
16
|
May
|
Administrators appointed at UK arm of German furniture manufacturer | ADMINISTRATION
Administrators have been appointed at the UK division of Ger...
16
|
May
|
Lifting equipment rental specialist acquired by Centurion | BUSINESS SALE
Aerial Platforms Limited (APL), a specialist rental provider...
07
|
Sep
|
888 Holdings confirms “advanced discussions” to acquire William Hill’s European business | DIVISION SALE
Betting firm 888 Holdings has confirmed that it is in &ldquo...
04
|
May
|
William Hill betting chain up for sale | BUSINESS SALE
William Hill has been put up for sale by American owner Caes...
21
|
Feb
|
Broadcaster buys greyhound stadia from William Hill | BUSINESS SALE
A broadcaster specialising in the supply of live racing pict...
Business Sale Report is the complete resource for finding genuine acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.