(Reuters) - British bookmaker William Hill Plc (L:WMH) warned on Wednesday that further local lockdowns triggered by a fast-spreading new coronavirus wave would hit core earnings, as it posted lower third-quarter revenue.
The company, which is set to be acquired by U.S. casino operator Caesars Entertainment (O:CZR), estimated that shutting 100 shops for four weeks due to further local lockdowns would reduce core earnings by around 2 million pounds.
The betting firm said that around 10% of its betting shops are located in regions where the local COVID-19 alert level is classified as "very high" according to the government. The government has introduced fresh curbs including shutting some public places early.
While net revenue was down 9% for 13 weeks ended Sept. 29, the drop was lower than the 32% fall it posted for the first-half, with growth in the United States cushioning the decline.
Gambling firms, including rivals GVC (L:GVC) and 888 Holdings (L:888), have been targeting overseas markets, especially the U.S., to offset a hit from tighter regulations in Britain.
William Hill highlighted good performance in its international online business, which was partially offset by unfavourable sports results, and signalled a return in footfall towards pre-COVID-19 levels in its betting shops.
Caesars is set to buy the company in a 2.9 billion pound deal to expand in the fast-growing U.S. sports-betting market and intends to sell its non-U.S. operations, including more than 1,400 UK betting shops.
