Operator shares rally after Brexit hit
William Hill, Ladbrokes, 888 and Paddy Power Betfair among London-listed firms to see value hit by UK's EU Leave vote
London-listed gambling operators saw their share price fall steeply upon opening today following the UK public’s decision to leave the European Union.
The likes of William Hill, Ladbrokes, 888, GVC Holdings and Paddy Power Betfair all took a financial hit as a result of the referendum outcome, which saw Leave attract 52% of the vote, although prices battled back after early morning trading.
William Hill’s share price plunged 22% from yesterday’s close of 300.20p to 235.50p, but had rallied to 279.70p at the time of writing.
The firm attempted to reassure the market this morning by telling analysts the risk to its business was “limited” due to the fact 85% of its revenue was derived from the UK.
Paddy Power Betfair also suffered significant early morning losses with its price crashing 25% from 8,700 to 6,525, but had climbed back to 8,500 by 10am, a loss of 2.5% on the day.
And the story was similar at Ladbrokes, GVC, 888 and the Rank Group which at the time of writing were down 6.8%, 5.2%, 5.4%, 8.2% respectively, having all been down by double-digits upon the market opening.
32Red CEO Ed Ware told EGR it was important “not to panic” following the Brexit vote and after he had seen his firm’s shares tumble 18% to 116p this morning. The share price has since partially recovered to 133p, down 6.3%.
Cenkos Securities analyst Simon French commented that operators would feel little short-term impact as a result of the vote, particularly as exit negotiations are likey to see the UK remain part of the EU for at least the next two years.