William Hill, the largest gambling enterprise in the UK, which owns William Hill Poker and around 2,300 betting shops, recently released its financial report for the third quarter of the current fiscal year ending in September. According to the report, William Hill has reported a net revenue increase of 9 percent and a 26 percent increase in operating profits but has declining poker revenue.
Over the third quarter, William Hill’s business grew steadily, recording an operating profit of £34.8 million, which is a 42 percent growth. However, the performance of the company’s poker sector was a bit disappointing. While William Hill Poker reported a growth of 14 percent during the third quarter of 2011, it recorded a fall of 24 percent this quarter. Recently, William Hill made some slight changes to the management committee of its online division, as a result of which Andrew Lee has now replaced Henry Birch as the CEO.
While Ladbrokes, William Hill’s rival, has suffered from the effects of the Olympic Games of 2012, William Hill has remained unaffected by this mega sports event although the number of visitors to its betting shops had fallen slightly. William Hill owes its bright Q3 financial report to its football punters, and especially to the punting activities generated by the UEFA Euro 2012, which helped it overcome the effects of the Olympic Games.
Speaking about the company’s financial report, CEO Ralph Topping said, “We saw strong Operating profit growth in the third quarter. Group net revenue remains well ahead of last year, with quarterly growth continuing broadly in line with that seen in the first half. Operating profit growth in the quarter further benefited from favorable timing on Online marketing costs.”
Simultaneously, William Hill has hinted that it is mulling over purchasing the 29% share Playtech has in William Hill Online. The company has stated that it will announce its final decision regarding this matter by Nov 13, adding that it will also announce whether it will make a formal offer to sign a £530 million acquisition deal with Sportingbet.
Ever since the results of the third quarter were announced, William Hill’s share value has fallen by 2.52 percent although it is still close to its 348.50 mark, making the company’s market capitalization £2.46 billion.
Predicting the future, Ralph Topping, CEO for William Hill, said, “The Board remains confident in its expectations for the full year and focused on the Group’s strategic opportunities to generate further value for shareholders.”