WMH.L Share News (WMH)

(Sharecast News) - William Hill raised £224m in a discounted stock sale as it looked to bolster its balance sheet and cash in on the growing US market.
The company on Tuesday issued a trading update for the six weeks to June 9, highlighting "a strong recovery" in recent weeks as Covid-19 restrictions eased and sporting events began to return.

"The proceeds of the placing will be used to strengthen the company's balance sheet providing strategic and financial flexibility during these unprecedented times, and to ensure we have a balance sheet to match our long-term growth ambitions," it said.

"We believe that the placing will allow us to continue to execute on those ambitions, most noticeably in building on our leading position in the fast-growing US market. Importantly, it will also provide wider group resilience in the event of further economic and regulatory disruption."

"We expect the trading backdrop to remain uncertain but are encouraged to see both online and the US performing ahead of our initial expectations," it said.

Group revenue during the period fell 50%, which was a little better than 57% decline seen in the previous six-week period. Online revenue dipped just 3% versus a 21% fall in the previous six weeks, while UK online revenue was 8% lower compared to a 33% drop previously.

US revenue was down 62% - an improvement on the 90% slump in the preceding six weeks.

William Hill said online sports wagers improved "significantly" thanks to the resumption of horseracing and the German Bundesliga.

In March and April customers continued to place bets on alternative products such as table tennis and activity has remained high alongside the return of horseracing and football, it said.

The company said it had cut monthly cash burn, had unrestricted liquidity of more than £500m and expected to generate positive cash in the second half of the year.

(Reporting by Frank Prenesti and Michele Maatouk)