Sports results boost William Hill

Bookmaker William Hill today said it had been boosted by more sporting results going in its favour in recent weeks.

The company said in an update ahead of its half-year results that gross win during the period was similar to last year after strong comparatives during the Euro 2004 football championships.

It said the outcome for its full year depended on the degree to which sporting results continued to “normalise” in the coming months. Shares were 2% higher after the announcement.

William Hill, which recently bought 624 betting shops from rival Stanley Leisure, warned earlier in the year of “significantly poorer results” relating to domestic and international football.

It said in a statement in May that gross win was level with last year and that operating costs had risen by 7.6% in the first 19 weeks of its financial year. Today’s update revealed this figure had slowed to 4.4%.

The group said: “This performance has been achieved against a comparative period that benefited from the more favourable sporting results and the Euro 2004 football championship.”

No information was given on which events have gone in William Hill’s favour.

Today’s figures excluded the impact of the Stanley Leisure sites, which it bought for £504m (€743.7m) in a deal completed last month.

The additional sites will be rebranded under the William Hill banner and enable the company to overtake Ladbrokes as Britain’s biggest bookmaker with 2,237 licensed beting offices.

Analyst Matthew Gerard, at stockbroker Investec Securities, said his estimates already accounted for more normal margins in the second half, following the tough summer comparatives.

He was expecting full year pre-tax profits to come in at £220m (€324.6m) against £205.3m (€302.9m) last time.

Results for the 26 weeks to June 28 are set to be announced on September 5.

Shares were 9p higher at 549p today.