Bookie William Hill plc (LON:WMH) announces half-year results Wednesday with the stock on the crest of a slump.
The shares are down 14% year-to-date in a market that is up almost 4%, as the company struggles to gets its online offering right while also dealing with the threat of the introduction of legislation to curb the use of the incredibly lucrative fixed odds betting machines.
On the plus side, summer got off to a good start, with favourable – for the bookie – results at the Cheltenham and Aintree horse racing festivals.
The group reported a 9% increase in net revenue in the 17 weeks to 25 April, driven by 16% growth in online betting.
Online was also supported by investments in its digital offering, including a new Android app for its Sportsbook (betting on sporting events) and a redesign of mobile and desktop in Gaming (i.e. casino games and bingo).
April saw the introduction of a new 10% levy on gross wins on bets on UK horse races, and the company has been slashing costs enthusiastically in an attempt to make good the money that has been diverted to support the “sport of kings”.
As well as updates on the cost savings programme, investors will be looking for further progress on the online side, plus news on the burgeoning US and Australian offerings.
Standard Chartered in rebuilding mode
The banks results season continues, albeit with probably the least well-known of the big beasts of the sector: Standard Chartered PLC (LON:STAN).
The bank’s relative obscurity is down to its lack of a high street presence in the UK, and its focus on emerging markets.
So far this year the stock is up 28% and is only 10p off its 12-month high of 856p, helped by an increasing belief in the investment community that the restructuring of the business is starting to pay off.
As ever, the company’s fortunes will largely depend on the economies in Asia, so any commentary on that will be closely followed, while those who bought the shares for the dividend – which was binned at the time of the full-year results in February – will be hoping for an indication of how long they will have to wait before it is restored.
Significant announcements expected
Interims: Aggreko PLC (LON:AGK), BAE Systems PLC (LON:BA.), Dignity PLC (LON:DTY), Devro PLC (LON:DVO), Johnston Press plc (LON:JPR), Novae Group PLC (LON:NVA), Rio Tinto PLC (LON:RIO), Smurfitt Kappa Group PLC (Q2) (LON:SKG), Standard Chartered PLC (LON:STAN), Travis Perkins PLC (LON:TPK), William Hill PLC (LON:WMH)
Trading updates: AG Barr PLC (LON:BAG), Vedanta Resources PLC (LON:VED)