William Hill Releases First-Half Results

British gambling group William Hill has released its interim results for the previous six months showing a five percent year-on-year rise in net revenues to £515.5 million from £488.8 million.

However, the difficult economic environment has seen the firm’s earnings before interest, tax and amortisation drop seven percent year-on-year to £134.6 million from £145.1 million. In addition, net revenues from its retail business decreased one percent from the same period last year to £393.2 million from £398.2 million.

The London-based firm recently announced that it would be relocating its online betting, sportsbook and fixed-odds games operations from the UK to Gibraltar. To underline the importance of these operations, William Hill reported that its William Hill Online subsidiary saw its net revenues increase 58 percent year-on-year to £100.1 million from £63.5 million.

All in all, William Hill reported that its operating profit for the past six months after exception items dropped 13 percent year-on-year to £124.2 million from £142.6 million.

“We have delivered a solid trading performance in the first half in spite of the tough economic environment and a mixed set of sporting results,” said Ralph Topping, Chief Executive Officer for William Hill.

“However, in July the performance was affected by weakness in horseracing margins and quieter trading on Saturdays and Sundays outside the football season.

“The extensive integration process for William Hill Online is making good progress and we are starting to see the benefits of the expanded business coming through. I am especially pleased with the number of new online customers we have attracted during the first half.

“The economic environment remains tough and makes it difficult to predict any clear trends. While we have shown resilience in the first half, as we look to the balance of the year, we are cognisant of rising unemployment and constraints on consumer spending generally as well as a weaker horseracing product.

“As a consequence of the first half performance, the difficult July and the uncertain economic environment, we anticipate that our profits for the full year from the retail channel are likely to be lower than previously expected. However, we remain comfortable with the market consensus for William Hill Online and look forward to the return of the football trade when the season starts again in mid-August.”