William Hill Revenue Up 2% In Q3 2011October 31, 2011 10:28 am
The gambling group William Hill has released its third quarter financial figures showing a 2% increase in its net revenue compared to the same period last year.
Covering the 13 week period up to 27th September, William Hill’s solid performance was boosted by strong results across its various operations, prompting the company to declare it was on target to reach analyst expectations of around £275m in earnings before interest, tax and amortisation for the year.
“We have delivered a solid performance in Q3, in spite of a highly competitive market place and a tough consumer environment. We continue to invest in product, pricing and innovation,” said William Hill’s CEO Ralph Topping.
Particularly encouraging was William Hill Online (WHO), which saw revenue soar an impressive 28%. This figure included a 14% increase in its poker revenues, as well as 41% growth in its online casino operation and 9% in Bingo.
Back in July, William Hill launched its online casino in Italy, with Topping adding that its first results were far in excess of expectations:
“Internationally, the initial performance of William Hill Online’s new Italian casino website is beating expectations having taken around 8 to 9% market share and we are the most successful of the non-domestic new entrants,”
However, it was not all good news as the company recorded a 22% fall in its operating profit for Q3. Nevertheless, William Hill’s profitability was adversely affected by unusually high margin seen last year at the Football World Cup, as well as a significant increase in its online investment.
As Peel Hunt analyst Nick Batram was quick to point out:
“Profit is down because of investment not because people aren’t betting. Online clearly has good momentum and retail is holding up better than people feared.”
William Hill shares are currently valued at 217.20, up from its 52 week low on 29th November 2010, of 153.70, but still lower than its 52 week high on 17th October 2011 of 248.30.