Fortune Smiling On William Hill

Published: Friday, September 09, 2005 Online-Casinos.com

FORTUNE SMILING ON WILLIAM HILL

Gross win up 5.5 percent in recent weeks, and online operations doing well

UK gambling group William Hill was enjoying better news this week after weaker returns earlier this year caused profits to fall six per cent.
The group, which competes with Ladbrokes for the number 1 bookie position in Britain, said profits before exceptional items fell to GBP 123.9 million in the six months to June 28, from the previous year's GBP132.5 million. However, the william hill group said there were signs of improvement in recent weeks, with gross win up 5.5 percent in the nine weeks to August 30, compared with a 0.3 per cent rise in the first half.

The biggest money-spinner of the last two years - fixed-odds betting terminals - enjoyed a net weekly profit per machine in the latest half rising just GBP 4 year-on-year to GBP 400.

The interactive business grew operating profits from GBP 24.4 million to GBP 31.7 million, helped by the explosive growth of poker, where income rose by 151 percent. Profits from telephone betting virtually halved to GBP 7.8 million, while those from the shops were 9 percent down at GBP 89 million.

The recent purchase of the Stanley high street shops is producing useful revenues, despite Hill having to sell 78 shops to satisfy the regulators.

Analysts are currently forecasting about GBP 200 million in profits for the full year, with the group still highly cash generative, highlighted by a promised GBP 200 to GBP 300 million share buyback.