William Hill's web bet pays off

William Hill said yesterday that new gaming machines and internet betting helped it deliver a rise in profits last year, while revenues grew in early 2011.

The bookmaker saw operating profits rise 7 per cent to 276.8 million in the year to 28 December on revenues of 1.07 billion.

William Hill Online saw takings leap 24 per cent to 251.5m, with amounts wagered up 57 per cent year-on-year. This included a 114 per cent rise from "in-play betting" thanks to adverts during televised sport.

Chief executive Ralph Topping said: "Our continuing investments in technology have underpinned growth, and the more than doubling of the amounts wagered from in-play this year demonstrates that customers welcome these innovations."

The bookmaker also revealed that net revenue was up 9 per cent in the eight weeks to 22 February compared to a year before. Online revenue was up 22 per cent, and both sectors benefited from customers increasing the size of their bets.

William Hill secured an injunction to protect its relationship with software provider Playtech on Tuesday, following reported takeover interest from rival Ladbrokes. It said yesterday it remained committed to the success of the joint venture.

In a buy note, Evolution Securities analyst James Hollins said that while the forecast beating results were welcome, the real focus was the "stellar current trading update".

He said the Playtech issue was likely to be "immaterial", although some other analysts were more concerned, and pointed to likely dificulties for retailers generally in the year ahead.

Shares in William Hill rose 4 per cent to 190.9p yesterday.