DAVY VIEW

A modest profit (H1 operating profit £12m) is as good an outcome as we could have expected for William Hill through an unprecedented period (even when various financial support schemes are considered). While the company’s outlook remains highly uncertain, near-term current trading suggests there is small upside risk to estimates at this stage. Longer term, the investment thesis hinges on its ability to secure a leading position in the US – notably, a better-than-expected current trading and financial position should facilitate a step-up in US growth investment from H2 onwards.