With gaming companies generally reporting lower earnings recently, blaming higher taxes, smoking bans and an economic downturn, William Hill Plc this week reported that it had seen no evidence of a slowdown in consumer spending affecting its business. In an interim management statement issued yesterday the Group says gross win increased 5% in trading for the 16 weeks ended 22 April 2008 compared to the previous year, representing a satisfactory performance in line with expectations.

Retail gross win grew 7%, driven by extended winter opening hours. The extended evening opening hours helped improve gaming machine gross win by 16%. The company declared that Sportsbook showed encouraging growth, as did Internet gaming. However, telephone gross win fell by 16% owing to lower amounts wagered on horseracing and exceptionally strong gross win margins.

Operating expenses increased in the period due to extended evening opening in the first quarter, the additional costs of Turf TV and the technology upgrade for the online Sportsbook. The Group reaffirmed its underlying cost inflation guidance for 2008 of between 4% and 6% excluding the incremental effects of winter evening opening and Turf TV.

In terms of its online business the Group says it is committed to growing its share of the gaming market and returning its Sportsbook to a competitive position. Critical to achieving this latter objective is the successful introduction of new ORBIS technology and this project is running to plan and to budget.

Internationally the Group is making progress with its joint venture operations in Spain. The joint venture with Codere has recently received its licence for Madrid, complementing the licence already awarded in the Basque Region. The joint venture is trading from its first outlet in Madrid and aims to secure approximately 130 outlets across both licences by the end of 2008. (E-04.25.08)

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