Machines win over flesh and blood for bookie William Hill

Published on Thursday 30 April 2009 21:42

WILLIAM Hill yesterday said a revenues boost from gaming machines and the internet helped it overcome a tough start to the year in horse racing.

The amount left by losing punters in its traditional over-the-counter operation slid 5 per cent after bad weather caused race cancellations and bookies suffered a tough time at the Cheltenham Festival in March.

The deterioration in the 17 weeks to 28 April came despite a successful Grand National, when 100-1 outsider Mon Mome romped home at Aintree.

While revenues from horse racing were under pressure, William Hill said the period saw continued strong performances in football betting and gaming machines.

As a result, the company's gross win from retail operations increased 2 per cent.

Including Hill's expanded online business, revenues for the group increased 6.5 per cent in the first quarter of the year.

Numis Securities said it continued to forecast profits of 207 million for the financial year, down slightly on the 216m posted a year earlier.

Stockbroker Collins Stewart – which carries a "buy" recommendation on the bookies, with a target price of 260p – said Hill "offers a highly attractive combination of value, defensiveness and growth".

Analyst Paul Leyland highlighted the "green shoots" of online growth.

William Hill recently received overwhelming backing for a 350m cash call on shareholders. The bookie wanted the funds to form part of a wider plan to restructure its 1.45 billion of bank facilities, the majority of which come up for renewal in March 2010.

The firm – which has about 2,300 shops in the UK and Ireland – turned to shareholders because it found it impossible to refinance debts in full due to the tough conditions in credit markets.

Shares in the bookmaker last night closed up 5.7 per cent, or 11.75p, at 219.5p.