William Hill PLC today announced a trading update for the six month period to 29 June 2010. The Group has benefitted from strong growth from William Hill Online and gaming machines and over the second quarter has seen the continuation of positive net revenue trends. Group net revenue was up around 3% compared with the same period in 2009 and pre-exceptional earnings before interest, tax and amortisation for the first half of 2010 are expected to be around £135 million.

William Hill Online performed strongly in the half, with total online net revenue growth of approximately 24% and operating profit (pre-exceptional earnings before interest, tax and amortization) approximately 43% higher than in the prior year. This was underpinned by a strong Sportsbook performance. Helped by the doubling of in-play betting, Sportsbook turnover was up 59% year over year. In addition to outstanding top-line growth, gross win margin on the Sportsbook was 7.7%, up from 6.8% in the first half of 2009. This resulted in a minority interest for Playtech of £6.3 million in the second quarter and £12.9 million in the year to date. As announced in May, William Hill Online has ceased accepting online business from clients resident in France.

Over The Counter (OTC) Retail has seen a very strong World Cup performance in June but also saw poor horseracing results in the second quarter as a whole, with a relatively weak Grand National in April followed by a loss-making Royal Ascot festival. Machines continued to perform strongly, benefitting from the roll-out of the 'Storm' machines across the Retail estate, which commenced in August 2009 and was completed in March 2010. Retail turnover was up around 7%, net revenue fell by about 1% and operating profit fell around 8%. For the half, the OTC gross win margin remained in line with the Group's expected trading range of between 17% and 18%.

William Hill says the challenge of competing with UK betting exchanges and Irish offshore telebetting operators, all of whom have benefitted from significant tax and cost advantages over UK bookmakers, is under active review. The adverse horseracing results led to a 33% decline in Telephone net revenue and a small operating loss is anticipated.

Ralph Topping, Chief Executive of William Hill, commented, “Whilst it was our worst ever Royal Ascot, with a loss on the meeting, the World Cup proved to be one of the best for bookmakers in 40 years. Overall, we have seen a good Group performance in the period, with a particularly strong contribution from William Hill Online.” (E-07.20.10)

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