This week William Hill announced that its online operations William Hill Interactive had acquired the Playtech affiliates and other assets to create the leading European online gaming and sports betting business, William Hill Online. The company also entered into an online gaming licence agreement with Playtech Ltd for a minimum of five years for poker and casino, with an option to move into other product areas.

William Hill will have a 71% controlling interest in William Hill Online and pro forma 2008 net revenues estimated at £190 million. Commenting on the transaction, Ralph Topping, CEO of William Hill PLC, said: “This transaction is a transformational step for William Hill consistent with our stated strategy to increase online gaming and international earnings. William Hill Online will be the leading European online gaming and sports betting business and the clear online leader amongst UK land based gaming and betting operators. The transaction generates significant shareholder value and enhanced growth prospects for William Hill.”

In an interim management statement released at the same time, for the 15 weeks ended 14 October 2008, William Hill PLC reported a 9% rise in gross win. Gaming machine gross win grew by 14% and Interactive gross win was up 21%. However, telephone gross win fell 30% for the period, due mainly to high roller losses. Telephone business contributes just 4% of gross win. Initial trading in Spain, where the Group’s joint venture has 23 units in Madrid and plans to begin trading in the Basque Region, has been encouraging.

Ralph Topping said: "This is a solid operational performance by the Group since the half year, demonstrating the resilience of the business against a challenging economic environment. To date we see little evidence that our business has been impacted by the economic downturn." He added, "With nine months of the year completed, and notwithstanding that comparatives become tougher over the final quarter, the Board remains comfortable with market expectations for the Group." (E-10.22.08)

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