William Hill profits hit by poor football results and lack of major tournaments

The betting company said that in the six months up to 27 June, profit before interest and tax fell 11 per cent to £109m

The company cited poor football results and the lack of a major international football tournament during that period (Reuters)

William Hill posted a sharp drop in pre-tax profit for the first half of 2017, citing poor football results and the lack of a major international football tournament during that period.

The betting company said that in the six months to 27 June, profit before interest and tax fell 11 per cent to £109m, down from £122m in the first six months of 2016.

Net revenue rose 3 per cent to £837m, but adjusted operating profit declined by 1 per cent, to £129.5m.

The company enjoyed strong momentum in its online offering, where adjusted operating profits rose 32 per cent to £57.2m, but income generated in retail outlets slipped.

Net revenue for that division was 2 per cent lower at £460.1m, while adjusted operating profit fell 14 per cent to £80.9m.

Neil Wilson, a senior market analyst at ETX Capital, said that this was a particular concern because retail accounts for more than half of overall revenues for William Hill. It’s also the part of the business that includes the highly lucrative fixed-odds betting terminals.

However, Philip Bowcock, who was promoted from chief financial officer to chief executive officer in March, struck a more optimistic tone.

“Our product improvements combined with improved marketing have seen both existing customers respond positively, and the number of new customers start growing again during the period,” he said.

“Internationally, our US business continues to perform well and in Australia … we are competing hard and diversifying our product range.”

Mr Bowcock also said that the company was on track to hit its target of £40m of annualised savings set earlier in the year by the end of 2017.

It announced that it was raising its interim dividend by 4 per cent to 4.26p per share, “reflecting the group's continued strong cash flow and the board's confidence in delivery of strategic priorities”.