24th Apr 2008 07:01
William Hill PLC24 April 2008 Thursday, 24th April 2008 WILLIAM HILL PLC INTERIM MANAGEMENT STATEMENT William Hill PLC (the 'Group') is today updating the market on trading for the16 weeks ended 22nd April 2008 ('the period'). Financial performance Total gross win increased by 5% in the period against strong prior yearcomparative numbers and represents a satisfactory performance in line withexpectations. Retail Retail gross win grew by 7% driven by extended winter opening hours. Over The Counter gross wins increased by 3% with sporting results generallybeing favourable over the period against strong comparables last year. TheCheltenham Festival delivered results in line with expectations and, whilst theGrand National itself was disappointing for bookmakers, the Aintree meeting as awhole provided a reasonable outcome. Machine gross win improved by 16% helped by the impact of extended eveningopening hours and new products. Interactive Interactive gross win grew by 5% over the comparative period with a fall inSportsbook gross win being offset by good growth in online gaming. The Sportsbook, despite remaining on the current technology platform, showedencouraging growth over the second half of 2007 at the average weekly gross winlevel. Internet gaming (encompassing casino, poker, games, bingo and skill games) hasshown a good level of growth, benefiting from a strong performance in games andbingo which has offset weaker performances in casino and poker where thecompetitive environment remains challenging. Telephone Telephone gross win fell by 16% as a result of declines in amounts wagered onhorserace betting and exceptionally strong gross win margins in 2007. Thisperformance remains in line with management expectations. Costs Operating expenses increased in the period due to extended evening opening inthe first quarter, the additional costs of Turf TV and the technology upgradefor the online Sportsbook. The Group reaffirms its underlying cost inflation guidance for 2008 of between4% and 6% excluding the incremental effects of winter evening opening and TurfTV. However, the Group anticipates that in the first half cost inflation will behigher for the reasons noted above and because the comparative period expenseswere depressed by non-recurring asset disposals. Material Events, Transactions And Financial Position There have been no material events, transactions or change in the financialposition of the Group since the year end other than as outlined in thisstatement. Other developments The Group is focused on maintaining and developing its strong Retail channel. Atthis stage of the year it has not seen any evidence of a slow down in consumerspending affecting its business. In terms of its online business the Group is committed to growing its share ofthe gaming market and returning its Sportsbook to a competitive position.Critical to achieving this latter objective is the successful introduction ofnew ORBIS technology. This project is running to plan and to budget. Internationally the Group is making progress with its joint venture operationsin Spain. The joint venture has recently received its licence for Madridcomplementing the licence already awarded in the Basque Region. The jointventure is trading from its first outlet in Madrid and aims to secureapproximately 130 outlets across both licences by the end of 2008. Interim Results The Group will issue its interim financial statements for the 26 weeks ended 1July 2008 on 31 July 2008. Enquiries: Ralph Topping, Chief Executive Officer Tel: 020 8918 3910 Simon Lane, Group Finance Director Tel: 020 8918 3910 Fiona Antcliffe/ Deborah Spencer, Tel: 020 7404 5959Brunswick Cautionary Statement This statement contains certain forward-looking statements with respect to thefinancial condition, results of operations, and businesses of William Hill PLC.These statements and forecasts involve risk, uncertainty and assumptions becausethey relate to events and depend upon circumstances that will occur in thefuture. There are a number of factors, which could cause actual results ordevelopments to differ materially from those expressed or implied by theseforward-looking statements. These forward-looking statements are made only as atthe date of this announcement. Nothing in this announcement should be construedas a profit forecast. Except as required by law, William Hill PLC has noobligation to update the forward-looking statements or to correct anyinaccuracies therein. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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