William Hill could sell Australian business

William Hill is said to be considering selling its Australian business over fears that a gambling crackdown in the country could impact profit.

Yesterday (Monday), the bookmaker revealed in a trading update that although it has forecast an 11% year-on-year increase in profit for its overall business in 2017, it has concerns over changing regulation in Australia.

Hills said the expected introduction of a ‘point of consumption’ tax in a number of states in Australia will place profitability in the country “under pressure” and it will now undertake a “strategic review” of its business in Australia.

According to the Financial Times newspaper, people close to the bookmaker said this could lead to Hills offloading its Australian unit, which generated £1.6bn (€1.8bn/$2.2bn) in revenue last year, representing approximately 7% of total revenue at the company.

However, sources have also told the newspaper that Hills could instead look to merge with another Australian betting business or spin-off into a joint venture with a local partner in the country.

“This, by no means, will result in a slash-and-burn,” one of the sources said.

Hills will reveal further details about its 2017 financial performance on February 23, when it publishes its full results for the year.

Related article: William Hill anticipates 11% profit hike in 2017