UK bookmakers William Hill has reported total gross wins increased by 9% over the 15 weeks ending 14 October, despite the uncertain consumer market. Although the firm admits this is weak compared to the previous year, the rise still represents good performance and this morning its share price responded positively to the news showing a strong rise as the FTSE opened. The group also announced this morning that it has finalised its acquisition of certain affiliates of Playtech and has entered into a software agreement with the group for a minimum of five years for poker and casino, with an option to move into other product areas.
The board of William Hill believes the transaction, which will serve to create an enlarged online service for the group, is in line with its strategy to become the leading European online gaming and sports betting business.
In its interim results released today, William Hill reported retail gross win grew by 10% in the period with gross win from gaming machines increasing 14% compared to last year where the figures were weaker due to the introduction of the smoking ban in England.
Ralph Topping, chief executive: "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."
The group has reported its net debt has been reduced somewhat, down £27.4 million to £1.3 billion. Topping reported the firm continues to perform strongly and operate comfortably within its banking covenants. Still, while the group's borrowing facilities have over 16 months to run until maturity William Hill is preparing to undertake the refinancing of these facilities in due course, he said.
