William Hill won’t rule out closures

BRITISH bookmaker William Hill has not ruled out closures of more of its outlets in Ireland, and won’t expand any further here until learning more about how the Government might update the national Betting Act over the coming months.

Future increases in company betting tax remain a grey area – the Government recently mothballed its plans to increase from 1% to 2% the betting duty bookies have to pay on their retail operations – and the introduction of gaming machines in Irish retail betting shops remains a hot potato.

Yesterday, William Hill reported a 13% drop in operating profit for the first half of this year (after exceptional items) to £124.2 million (€145.9m) (down from £142.6m for the same period last year).

Earnings before interest, tax and amortisation (EBITA) fell by 7% – on a year-on-year basis – to £134.6m and first half net revenue was up by 5% at £515.5m.

Of that revenue, retail turnover was down by 1%; but revenue from William Hill’s online betting services rose by an impressive 58% to just over £100m.

The company has alsoannounced the moving of its online betting operations from the UK to Gibraltar, in order to forego paying betting tax.

Hill’s has already closed 14 of its underperforming Irish high-street betting shops this year – decreasing its total number of shops here to 35.

While a spokesperson for the company said yesterday that no further closures here were imminent, the outlet portfolio will still be reviewed on an ongoing basis.

On an overall basis, William Hill’s chief executive Ralph Topping called the first half results “a solid trading performance in spite of the tough economic environment and a mixed set of sporting results”.

The company is also title sponsor of the Galway Plate race at the Galway Festival.