In yesterday’s trading update William Hill PLC announced that the fourth quarter of 2010 saw a continuation of the positive Group net revenue trend seen in the previous quarters of the year, driven primarily by strong growth from William Hill online and from gaming machines in the shops. For the full year the Group delivered a strong performance at the top end of market expectations. The Board believes net revenue will have grown around 7% for the year with pre-exceptional earnings before interest, tax and amortisation of about £275 million.

William Hill Online performed strongly, with total online net revenue year-on-year growth of around 24%. This was underpinned by a strong Sportsbook performance, with turnover up an estimated 57%, including about 114% growth in in-play turnover with increased awareness prompted through advertising of William Hill Online’s improved in-play offering. Sportsbook gross win margin was at the top end of the Group’s expected range at 8.0%, resulting in net revenue growth of 95% versus 2009. Online gaming net revenues grew around 5%, with a good performance in Bingo helping to offset the adverse impact of the French closure, which resulted in a flat Casino performance.

Retail turnover grew some 8% year-on-year, driven by a strong machines performance following the roll-out of the ‘Storm’ cabinets. OTC gross win margin was at the top end of the normal trading range at 17.9%. Retail net revenue grew by about 3% year-on-year, with machines gross win growth of c13% more than offsetting a c1% decline in OTC net revenue. On a net revenue basis, machines grew by 11%, reflecting the impact of the VAT increase in January 2010. Overall, this resulted in flat Operating profit year-on-year.

Telephone betting delivered an Operating profit in the second half which means that the channel is likely to make a small Operating profit in 2010 as a whole. The Group previously announced that it expected to close the UK Telephone business and to open a new business within William Hill Online in Q4. This has been slightly delayed and is now expected to be completed by February 2011.

Final results for the 52 weeks ending 28 December, 2010 will be announced on 25 February 2011. Ralph Topping, Chief Executive of William Hill, commented: "This is a strong performance and I am delighted that, in particular, our Online business and the gaming machines in our shops continued to see encouraging revenue growth during Q4. Our continuing technological developments in what is a fast changing industry have underpinned growth and the doubling of our turnover from in-play this year demonstrates that customers are welcoming these innovations.” (E-01.20.11)

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