WILLIAM HILL and 888 owner Evoke are in the process of calculating the costs needed to reorganise the company this year.
The gambling giant saw profits fall by two-thirds in the first half, but bosses insisted yesterday the company was becoming “stronger”.
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Evoke launched a reorganization plan in March to focus more on its core markets, including a new name for the company, 888.
It also included the sale of its U.S. consumer-facing 888 gamble company to gaming and betting company Hard Rock Digital.
Marketing spend increased by £16m and there was talk of investment in artificial intelligence to increase efficiency and save money.
But the benefits have yet to materialise: the company earned £43.8m in the six months to June, down significantly from £130.8m in the same period last year.
Sales fell 2 percent to £862 million in the same period.
Evoke says it is facing rising financing costs following its £1.95 billion debt-financed takeover of William Hill two years ago.
Boss Per Widerstrom remained optimistic, claiming that the “underlying health of the business continues to strengthen”.
He added: “We are completely transforming this company. The scale of the change is significant.”
Evoke warned the stock market of the problems last month, reporting that online sports betting revenues had fallen due to changes in its business operations compared to last year.
The bad news sent shares down about 40 percent this year.
The UK retail arm, which includes William Hill stores, saw sales fall 8 percent in the past six months compared to the same period last year.
Looking ahead, bosses expect a “significant improvement in profitability” in the second half of the year as losses from the sale of their US doing business will no longer play a role.
Larger rival Flutter, owner of Betfair and Paddy powershowed more positive results this week, partly due to improved performance in the US.
Revenue rose by a fifth to £2.8 billion in the quarter and the number of gamblers on the sites rose by 17 per cent to 14.3 million.
RANK'S MONEY MECCA
GROSVENOR Casino owner Rank has a winner on its hands as profits doubled in the past six months to £46.5 million.
The company Mecca Bingo Operating activities had a particularly good half year, turning a loss of £5.6 million into an operating profit of £3.9 million.
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Thanks to these figures, Rank's shares rose by seven percent.
The company struggled during the pandemic and cost of living crisis, with 30 of its 83 bingo halls forced to close.
But visits to Grosvenor Casinos are up nine percent, with a two percent increase in the Mecca Bingo halls.
And some 44 percent of the 187,000 new customers in Mecca were under 35.
According to Rank boss John O'Reilly, young people are attracted to “an excellent night out in a pretty expensive world”.
Bingo nights are livened up with DJs, comedians and magicians, making it more 'experience-oriented'.
The Grosvenor Casinos in the city centre also attract more tourists, especially from London.
MARCH A PAYDAY
US confectionery giant Mars is to acquire Pringles and Pop-Tart maker Kellanova in a £28bn merger.
Kellanova spun off from food giant Kellogg's last year and now sells snacks and cereals outside North America.
The deal brings together brands including Mars, Snickers and M&M's, along with Whiskas pet food.
As a result, Pringles will be available in China and Twix bars will be sold in Africa.
Kellanova CEO Steve Cahillane welcomed the merger, which requires regulator support.
ASTRA'S £200 billion
Drugs giant AstraZeneca has become the latest British company to hit £200bn in sales after shares hit a record high after authorities backed a US cancer drug.
Imfinzi is intended for patients with limited-stage small cell lung cancer.
The news sent shares up two percent, valuing the British-Swedish pharmaceutical company to around £204 billion.
Vodafone and Shell have previously achieved valuations of £200 billion, but with shares up 20 percent this year, AstraZeneca is the highest rated company in the FTSE 100.
ADMIRAL SAILS TO SUCCESS
INSURANCE COMPANY Admiral saw customer numbers rise 12 percent this year after cutting premiums.
With 10.5 million people choosing the company, profits rose by a third to £309.8m in the six months to June.
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The company's revenue rose 43 percent to £3.21 billion.
Admiral increased premiums in 2022 and 2023 in response to what it described as “increased claims inflation”.
But the policy reversal allowed the company to report a record 5.5 million customers in the UK, with another half a million people signing up for other product lines.
CEO Milena Mondini de Focatiis also announced that Admiral is moving to a “scaled, agile” business model and will increase its AI capabilities.
Shares rose 8 percent after the news broke.
IG analyst Chris Beauchamp said: “The good times appear to be back for insurers, and also for their investors.”
BAD LINE AT THREE
Mobile network Three UK said the £30m loss in the first half of the year was due to inflation.
The company said the costs of running and improving its network of telephone masts and digital infrastructure had increased.
But the losses were lower than the £76m reported in the same period last year.
Three is still awaiting approval for a planned £15bn merger with telecoms rival Vodafone, a deal that has raised regulatory concerns.