DAVY VIEW

In an environment where the set of structural growth opportunities is expanding (acceleration in US regulation, a channel shift towards online) but free cash flow (FCF) generation prospects are highly uncertain (potential impairment of the cash-generating retail channel), available capital is critical. William Hill’s capital raise is designed to remove any concern that it might have to prioritise financial caution over investment. The US remains the big prize – it looks set to be a bigger but probably more expensive market than initially expected. The company can now maintain its current growth investment. It will need to, even to simply compete.