As reported in the West Australian Sport, London’s British bookmaker William Hill said it hoped that its operating profit this year will come in at the top end of the market after the Football World Cup assisted in boosting its third quarter results.
Obviously these figures are great news for the new Chief Executive, James Henderson, who took the new position in August this year (2014) after working for the company for almost thirty years.
William Hills Net revenue rose 23% during the 13 weeks to the end of September 2014 and the company’s operating profit jumped a massive 89%.
It appears that the group performed most strongly in the third quarter as the market was driven by favourable sporting results and the continued development of William Hills UK and international businesses.
Henderson was also reported as saying, ‘positive sporting results in the quarter, including a strong end to the World Cup have moved us close to or ahead of normalised gross win margins on a year to date basis.’
Shares in William Hill rose 0.9% to 366.5 pence. Rival bookmakers Ladbrokes and Paddy Power also made gains.
William Hill has also expanded online and internationally adding more operations in Italy, Australia, Spain and the United States to complement its chain of British High Street betting shops.
Analyst Ivor Jones of Numis Securities reckons that William Hill ‘is a soundly financed market leader with a growing and under-appreciated international footprint.’
Jones is also forecasting an annual operating profit of around £362 million for the whole of 2014 which is up from £335 million last year.
*In Britain the betting industry is facing regulatory and financial pressures as the government is in the process of tightening their controls on both betting shops and increasing taxes on online gambling and high stakes gaming machines. These measures brought in by the government are expected to cost the gambling industry in the region of £400 million each year and consequentially are expected to depress profits from 2015 even though there are cost cuts planned to soften their impact as a whole.
Information sourced from The West Australian Sport
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