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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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
