William Hill still a buy as book value remains attractive

23rd October 2015

The Share Centre says that William Hill remains a buy despite the bookmaker saying that full year profits will be around the bottom end of consensus of £290.9m and £312.1m with the third quarter disappointing the market.

Ian Forrest, investment research analyst at The Share Centre, says: “William Hill’s CEO said Q3 was always going to be impacted by the strong gross win margin in the same period last year, by which these results are compared. Investors should also acknowledge that these results were impacted by increased UK gambling duties.

“The company’s book value, compared to its main peers, is attractive for a stock that delivers a strong return on capital employed and a prospective dividend yield of 3.5%. As a result, we continue to recommend William Hill as a ‘buy’ for medium risk investors.

“Growth in its mobile and online operations and selective international expansion should provide regional, regulatory and economic diversification, while expanding its services to appeal to a wider demographic.”

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