Friday preview: William Hill to report strong first quarter

Gaming company William Hill is expected to post a strong first quarter on Friday on the back of double-digit revenue growth from its online division and betting shops.

Gaming company William Hill is expected to post a strong first quarter on Friday on the back of double-digit revenue growth from its online division and betting shops.

The betting giant will report earnings of £344.1m, according to analysts.

The first seven weeks in which online and betting shop revenues rose 30% and 13% respectively, is expected to boost earnings.

William Hill recently completed two significant transactions, spending a combined £900m on Sportingbet's Australian operations and buying the 29% minority interest in William Hill Online (WHO). It was part funded by a £374m rights issue which came after an impressive 2012 performance.

Canaccord Genuity said the deal gives the company a leading position in the fast growing and regulated Australian online gaming market, with scope to build a strong position in Spain.

"Online growth will be held back in FY13 by tough comps (European Championships, exit from some markets), while retail profits will likely fall due to the revised UK machines tax," the broker added.

"Nonetheless, we expect a strong Q1 IMS on April 19th, buoyed by a record Grand National and helpful run of football results. Consolidating control of WHO makes good sense and the price looks fair.

"With an increased percentage of online profits (47% in FY13), a growing track record of operational out-performance and strong current momentum (17% revenue growth in first 7 weeks of Q1), a premium looks justified, but we see little scope for further re-rating."

Friday April 19th

INTERIM DIVIDEND PAYMENT DATE

Abcam, Berkeley Group Holdings (The), Downing Absolute Income VCT 1, Downing Absolute Income VCT 1 'C' Shares , Edge Performance VCT 'H' Shares, Mobeus Income & Growth 2 Vct, Waterman Group

QUARTERLY EX-DIVIDEND DATE

Caterpillar Inc.

INTERNATIONAL ECONOMIC ANNOUNCEMENTS

Balance of Payments (EU) (09:00)

World Bank/IMF annual meeting

Q3

Kcell Joint Stock Co GDR (Reg S)

FINALS

Phaunos Timber Fund Ltd.

ANNUAL REPORT

Travis Perkins

IMSS

William Hill

SPECIAL DIVIDEND PAYMENT DATE

Qannas Investments Ltd

EGMS

3Legs Resources

AGMS

Anglo American, Sterling Energy, Telekomunikasi Indonesia (Persero) ADS, Ubisense Group

TRADING ANNOUNCEMENTS

Record

FINAL DIVIDEND PAYMENT DATE

Baronsmead VCT 4, Belvoir Lettings, Heavitree Brewery, Heavitree Brewery 'A' Shares, Pennant International Group, Telecity Group

RD

Recommended

Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021
Royal Mail will deliver for investors – here's how to play it
Trading

Royal Mail will deliver for investors – here's how to play it

Royal Mail Group has found its feet in the past 18 months and looks cheap. Matthew Partridge looks at how to trade the shares.
14 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021

Most Popular

The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021