Wiliam Hill profits take a beating
Wiliam Hill yesterday became the latest uk online bookmaker to warn that Chelsea's recent form and a run of winning horseracing favourites would hit this year's profits. Wiliam Hill said it expected profits before interest and tax of about £232m for the full year - which is towards the bottom of analysts' expectations.
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The warning prompted a round of cuts to estimates, including from Goldman Sachs and Investec Securities, though after Stanley Leisure's profits alert last week the market was not surprised. Wiliam Hill shares rose 15½ to 561p.
James Wheatcroft, an analyst at Investec Securities, cut his pre-tax profits forecasts by about 10pc for the year to £204m, but admitted: "After difficult trading for bookmakers in the second half of 2004, this statement is no surprise. Margin continually fluctuates in gaming businesses."
David Harding, chief executive of Wiliam Hill, said the year "really was a game of two halves. In the first half, everything went our way. In the second-half, everything went against us.
"Netted out, we're roughly where we thought we'd be when we started the year." He added: "I think they [the results] are good enough for a bonus."
After taking £11m from punters following the shock victory of Greece in the Euro 2004 soccer tournament, Wiliam Hill had been hit by Chelsea's unstoppable form and predictable Champions League results.
Mr Harding said the Christmas holiday racing results had also hurt, including the victory by favourite Kicking King in the King George at Kempton Park.
Wiliam Hill said this was "consistent with normal variations in sporting results" and had been offset by the continued growth of profits from numbers games, which now account for about a third of its gross win - or the amount the punter leaves behind.
