Wm Hill says 2009 was hellish for bookmakers

By Alistair Osborne, Business Editor (Leisure) Published: 6:16PM GMT twenty-six February 2010

William Hill

Unveiling a 9pc tumble in full-year increase to �198m prior to taxation and well-developed charges, the bookie pronounced it approaching a "challenging" 2010 notwithstanding an approaching �10m progress from the football World Cup. The bookie pronounced 2009 had been "characterised by poignant sensitivity in sporting results", that arch senior manager Ralph Topping pronounced was a substitution for "hellish for bookmakers".

Despite a clever fourth quarter, increased by enlightened football results, amounts wagered in the 2,342 betting shops fell by 8pc as punters staked less in the recession. Shop handling profits, prior to exceptionals, fell 16pc to �203m notwithstanding appurtenance sum win rising 8pc.

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Mr Topping has vital issues with the bookie"s write and Irish betting businesses. Beaten up by offshore operators from low-tax environments and disorder from a �5m loss to a Middle Eastern high-roller, write betting swung to a �1.8m loss opposite �5.9m increase last time. William Hill has created off �34.8m of the business" �80.4m goodwill.

Mr Topping pronounced he was reviewing the call centre operations in Sheffield and Leeds, that occupy 400 people. "By the finish of this year we"ll have taken movement on it. Either we move the centres offshore, stay where we are or close one," he said.

In Ireland, the group"s 35 shops were created down by �8.2m. Their destiny depends on the Irish government"s appearing preference either to concede machines in the shops.

Mr Topping pronounced he was carefree that the UK Government would give up from raising bookmaker"s 15pc sum increase taxation at the Budget. "A thousand betting shops would close if they upped the tax," he said.

Boosted by a great online performance, net revenues rose 4pc to �998m but pre-tax increase fell 59pc to �121m strike by �76.6m of well-developed charges contra a �77.2m benefit last time after the online tie-up with Playtech.

Mr Topping had no fears betting shops were in constructional decline. "Are you observant I"ve got a commercial operation that"s knackered? Definitely not."

In the initial 7 weeks of this year, net income was down 0.6pc. Retail sum win fell 5pc but online net income was up by 22pc.

Mr Topping pronounced he approaching the World Cup to tip the �5m-�6m grant it done to the shops last time. "I"m after �10m, " he said.

Wyn Ellis, a Numis analyst, pronounced expansion from machines and online would "only to some extent equivalent the goods of what is expected to be a formidable year for the rarely operationally leveraged sell business".

The dividend, on credit Apr 1, slipped 3pc to 7.5p though is paid on a wider shareholder bottom after last year"s 1-for-1 rights issue to lift �350m.