William Hill sees revenues plunge 57% during COVID-19 pandemic

William Hill's revenue was down by 57% as the company loses £15m (USD 18.3M) a month during the coronavirus pandemic.

Revenue dropped 85% in its shops between 11 March, before the lockdown began, and 28 April. Online revenue was down 33% in the UK.

According to a trading update by the company, the decline in online sports betting had been "less than anticipated," as customers had flocked to alternatives when their favorite sports events had been scrapped, such as table tennis, emerging market football, and gaming.

William Hill said it had also seen a 5% growth online in the US, where it offers sports betting in four states. The company said it had “accelerated” product development in the US, and planned to launch its online casino later this year.

The company said it had taken “decisive action” to reduce costs and maintain cash flow, saying it had drawn down credit facilities and had more than £700m in unrestricted liquidity on 28 April.

Dividends have been suspended until further notice, “non-essential” capital spending has been deferred and a covenant waiver has been agreed with lenders.

“We have ensured that capital expenditure related to growth opportunities has been preserved, enabling us to press ahead with our plans to grow the US business and continue to develop our product,” it said.

The betting giant announced it planned a “staged reopening” of its branches in the second half of the year in the UK, but did not reveal precisely when the first shops will open their doors to customers.

"We remain focused on player safety, employing ever more customer protection. We are taking care of our teams, securing as many employment opportunities as possible and we are ready to power up the business as soon as Covid-19 restrictions permit," said chief executive Ulrik Bengtsson.