WMH.L Share News (WMH)

(Sharecast News) - Bookmaker William Hill announced the suspension of its dividend on Monday as it said the cancellation or postponement of sporting events due to the coronavirus could dent earnings by up to ?110m.
The company said 2020 revenue and earnings would see a "material impact" from the postponement and cancellation of sporting events and closure of US casinos. It noted that in 2019, 53% of its revenue was generated through the sports book business.

Group earnings before interest, tax, depreciation and amortisation are expected to reduce by between ?100m and 110m in a scenario where UK and international football resumes in August; the UEFA European Football Championship is cancelled or postponed until 2021; UK retail shops close for a month; the Grand National and Royal Ascot are cancelled and US sports resume in time for the new NFL season in September.

Currently, horse racing and its retail shops remain open. An additional month of closure would impact EBITDA by ?25m to ?30m, it said.

As a result of the current uncertainty, William Hill suspended its dividend until further notice.

Chief executive officer Ulrik Bengtsson said: "In recent days we have seen betting on horses, greyhounds, international football and our well-stablished virtual sports.

"We are taking action to maintain our operational capability, to secure and enhance our liquidity and to ensure we are in a strong position to resume full operations when the sporting calendar returns to normal.

"We have been quick to initiate our business continuity plans, which have been in place for some weeks, with our colleague's and customer's welfare highest on the agenda. Large parts of the business continue to operate on a 'business as usual' basis."

At 1530 GMT, the shares were down 34% at 58.48p.