200
221 209 208
|
£ m
150
|
174 |
145 |
161 |
100 |
|
|
|
50 |
|
|
|
TABLES FIRMLY TURNED
There can be no mistaking the crisis that engulfed UK retail betting shops in 2020 as the lockdowns caused by the pandemic , first in the spring and then again this past winter , have caused extended retail closures .
The financial results from William Hill , Entain and Flutter – which encompass over two-thirds of the UK retail shops estate – show how the closures laid waste to profits .
Entain , the largest operator in the space with the Ladbrokes and Coral estates under its umbrella , saw underlying retail operating profit tipped into negative territory , registering a loss of £ 10.2m compared with an operating profit of £ 134.2m in 2019 .
William Hill fared no better . It registered an adjusted operating loss for the retail division for the year of £ 29.5m , compared with a profit of £ 83.2m the previous year .
Only slightly bucking the trend , Flutter ’ s Paddy Power retail operation saw adjusted EBITDA come in more than 97 % down at £ 2m , compared with £ 76m in 2019 .
Though there has been no confirmation as yet , it can be assumed that the other major firm on the high street , Betfred , would have suffered a similar fate .
This is quite some turnaround from the retail sector ’ s reputation as a cash cow for those at the head of the market . Of course , it was extraordinary circumstances that turned the tables but these remain worrying times for those involved in retail betting
Chart 20 : Plunging operating profit at Entain 2016-20 (£ m )
£ m
240 220
240 200
220 180
200 160
180 140
160 120
140
100 12080
10060
80 40
211.2
199.8 211.2
199.8
134.2
134.2
|
60
20
|
|
40
0
|
|
20
-20
|
-10.2 |
0 |
-40 |
-20 -40 |
2017 |
2018 |
2019 |
2020
-10.2
|
|
Source : company reports
2017
|
2018 |
2019 |
2020 |
Chart 21 : Plunging operating profit at William Hill 2016-20 (£ m )
180 |
|
|
|
|
180
160
160
140
|
162
162
|
160.9
160.9
|
150.3
150.3
|
|
140
120
|
|
|
|
|
120
100
|
|
|
|
|
100
80
80
60
|
83.2
83.2
|
£ m
0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Year to March
Source : Gambling Commission
Chart 20 : Plunging retail operating pro�t at Entain 2017-20 (£ m )
£ m
Chart 21 : Plunging retail operating pro�t at William Hill 2016-20 (£ m )
£ m
60 40
40 20
|
20
0
|
0 |
-20 |
|
-20-40
-40-60 -60
|
2016 |
2017 |
2018 |
2019 |
-29.5
-29.5
2020
|
|
2016 |
2017 |
2018 |
2019 |
2020 |
Source : company reports |
Chart 22 : Falling retail net revenue at William Hill 2016-20 (£ m )
Chart 22 : Falling revenues at William Hill 2016-20 (£ m )
£ m
|
1000
900
800
|
893.9 |
913.1 |
895.2 |
700 |
717 |
600 |
500 |
400 |
354.2 |
300 |
200 |
100 |
0 |
2016 |
2017 |
2018 |
2019 |
2020 |
Source : company reports
Sources : Company reports
Chart 23 : Entain UK retail net revenue 2017-20 (£ m )
April 2021
13
1600