William Hill says not being hurt by downturn
Bookmaker William Hill said on Monday it was not being hurt by the economic downturn and was comfortable with market hopes for the full year as it reported a 9 percent increase in third-quarter gross win.
Unemployment down in 2007 final quarterThe group also said it has acquired some affiliates of Playtech Ltd and secured an online gaming licence deal with the company to create an enlarged William Hill Online business.
The trading and acquisition news sent shares in William Hill 20 percent higher.
The bookmaker said gross win - the amount the company has won and clients lost - for the nine months to October 14 increased 5 percent.
Retail gross win grew by 10 percent in the third quarter, reflecting a 7 percent increase in 'over the counter' gross win due to favourable sporting results and a 14 percent rise in gaming machines' gross win.
Gross win from William Hill's interactive business - online sports betting and internet gaming - increased 21 percent but telephone gross win fell 30 percent, largely due to reduced revenue from high roller clients.
Operating expenses increased 5 percent, in line with management expectations.
"This is a solid operational performance by the group since the half-year, demonstrating the resilience of the business against a challenging economic environment," Chief Executive Ralph Topping said.
"We see little evidence that our business has been impacted by the economic downturn ... the board remains comfortable with market expectations for the group," he said.
Analysts at Numis said the group's trading update was "encouraging" and placed their forecasts under review.
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