Online surge drives revenues up 6% at William Hill

High street betting shop chain WIlliam Hill expects full-year net revenue to be 6% higher in the 52 weeks ended December 27th, helped by online sales which jumped 28% year-on-year.

However, operating profits are expected to fall slightly against a tough comparator from £276.8m to £274. The prior year benefitted from a lower taxation rate on machines and an "exceptionally high margin World Cup".

According to Chief Executive Ralph Topping, "Going into 2011, we were - like many businesses with a strong presence in the UK - predicted to face a challenging consumer backdrop but our overall performance shows we've seen the benefit of being a predominantly low ticket leisure activity."

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Over-the-counter (OTC) amounts wagered in the fourth quarter rose by 11%, but the OTC gross win margin fell to 17%, from 19% the year before. "Poor football results, particularly on low stake multiple selection bets, proved to be a drag on margin, especially in November, and horseracing margin was below its normal range," the firm said.

Separately, William Hill announced that it has awarded an exclusive contract to Inspired Gaming Group for the sole supply of gaming machines to its licensed betting offices (LBOs). Inspired currently supplies 79% of William Hill's LBOs and will roll out its new-generation 'Storm' cabinets to the remaining 21% by the middle of 2012.