William Hill rev down after freak football results

William Hill rev down after freak football results

THE NET EFFECT of the William Hill Online-Playtech deal was not strong enough to offset a run of unfavourable football and racing results for William Hill, which unveiled a 3% year-on-year fall in third-quarter net revenue this morning.

Net revenue from William Hill Online (WHO) increased 56% in Q3, and by 2% on a pro-forma basis, despite the bad run of football results during August and October which also impacted rival British bookmaker Ladbrokes, William Hill revealed in a trading update today.

Sportsbook net revenue consequently fell 36% year-on-year in the third quarter, despite overall turnover from the sportsbook in the third quarter increasing 40%.

William Hill chief executive Ralph Topping said the “extraordinary” run of results which saw draws occur in only 6% of English Premier League football matches over the period, compared to a historical norm of around 25%, had reduced operating profit by £7m, but returned to being in line with historic trading in the latter part of September and early October.

The company recorded a net revenue margin of 3.2%, less than half the 7.0% recorded at the same point in 2008.

Net revenue from casino, poker, bingo and skill games grew by 98% year-on-year in the third quarter, and by 12% on a pro-forma basis, which the company said was in line with management expectations,

A statement continued that William Hill, which came fifth in this year’s Power 50 leading operators, remained “confident” that the transfer of its sportsbook and fixed-odds games from the UK to Gibraltar announced during the quarter would deliver cost savings of around £4m in 2009, and around £10m on a full-year basis.

Topping added that the long-delayed integration of its casino onto the Playtech platform was nearing completion. Topping said: “William Hill Online is continuing to make good progress with especially strong growth in sportsbook volumes. With the launch of our new Playtech casino before the end of October, integration of our acquisition will be complete.”

William Hill also said it would be continuing its legal appeal in England’s new Supreme Court, which began sitting this month, against the dismissal of the bookmaker’s claim that bookmakers’ television service Turf TV had acquired its television coverage rights in an uncompetitive manner.

Source: EGaming Review Magazine October, 2009