Snow bar to punters as William Hill sales jump

Heavy snowfall and freezing temperatures last month failed to stop gamblers placing their bets as William Hill yesterday posted robust sales growth in its shops.

The bookmaker - which has more than 2,300 outlets in the UK and Ireland - said retail turnover grew by 4 per cent in December and 8 per cent in the fourth quarter despite the adverse weather.

The Arctic conditions led to 47 per cent of scheduled UK horseracing meetings being cancelled but just one weekend of reduced football.

William Hill said revenue growth in the three months to 28 December was driven by online gambling and use of gaming machines in its shops.

The group said it expects full-year earnings to come in at the top end of expectations - with pre-exceptional underlying earnings of around 275 million, up from 258.6m the previous year.

Yesterday's trading update forecast net revenue growth of 7 per cent for the group in the year to 28 December.

William Hill's online division saw net revenue growth of 24 per cent year-on-year, driven by strong sports betting, as well as online gaming such as casino and bingo.

The company has also expanded its mobile offering, with betting applications available through its website.

Turnover for "in-play" betting - placing bets on an event or match while it is in progress - more than doubled over the year, spurred on by television adverts promoting the service.

Ralph Topping, chief executive of William Hill, said: "Overall, I'd class 2010 as a strong performance.

"We're at the top end of market expectations on operating profit, we've transformed our trading operation, we've become a market leader in in-play football as we promised, we're focusing on mobile over the next two years, and we've still got the best football and gaming offerings on the high street."

In July, the firm revealed plans to transfer its telephone business to Gibraltar in a move that affected its contribution to the Horseracing Betting Levy, which UK-based bookies have to pay in order to take bets on British races.

Looking ahead, Ivor Jones, an analyst at brokerage Numis, said: "William Hill is in good shape for a tough year with new gaming machines in the betting shops and an upgraded sportsbook offering online.

"But these strengths have to offset the challenges of increased VAT on machines, increased unemployment and reduced disposable income for the core retail customer base and rising costs.

"We believe that profits, and hence the share price, will make little progress this year."

Richard Curr, head of dealing at Prime Markets, added: "It may just be that the strong fourth-quarter performance from William Hill marks a turning point for the shares."The fact that the boost to expectations for full year numbers came from a quarter blighted by cancelled horse racing and football events due to adverse weather is all the more impressive, and is clear evidence that the William Hill management team has now developed a truly resilient model for growth.

"While some may view the price spike as little more than a false dawn and an opportunity to take profits, Prime Markets believes the betting group has turned the corner, and we expect shares to push back through the 200p barrier in short order."