William Hill Online lifts group results
William Hill has released its half-year results, with online gaming revenue up 24% and telephone revenue down 33%.
Group net revenue for the half was up 3% from last year, with earnings before interest, tax and amortisation expected to be around £135m (2009: £134.6m), it said in a statement to the London Stock Exchange.
William Hill Online’s operating profit was up 43% from last year, underpinned by a strong sportsbook performance. Helped by the doubling of in-play betting, its sportsbook turnover was up 59% year-on-year.
Gross win margin on the sportsbook was up 7.7% from 6.8% in the first half of last year. This resulted in an increase in profits of £12.9m for Playtech for the first half of this year. The software supplier has a 29% stake in the firm.
William Hill’s OTC retail division saw a strong World Cup performance in June, but a relatively weak Grand National in April and a loss-making Royal Ascot. Retail turnover was up by 7%, net revenue fell by 1% and operating profit fell 8%.
Poor horseracing results led to a 33% decline in telephone net revenues. The board is reviewing the firm’s telephone division in the light of competition from UK betting exchanges and Irish offshore telebetting operators, who have tax and cost advantages over UK bookmakers.
Ralph Topping, chief executive of William Hill, commented: “While it was our worst ever Royal Ascot, with a loss on the meeting, the World Cup proved to be one of the best for bookmakers in 40 years. Overall, we have seen a good group performance in the period, with a particularly strong contribution from William Hill Online.”