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William Hill's profits dented by punters and the taxman

William Hill said its operating profits slumped 19 per cent during the first three months of the year

Jamie Dunkley
Friday 24 April 2015 08:01 BST
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George Osborne’s raid on the gambling industry and a run of predictable Premier League football results have hit profits at Britain’s largest bookie.

William Hill said its operating profits slumped 19 per cent during the first three months of the year after it paid an extra £20m in taxes on online gambling profits and touchscreen gaming machines. Operating profits in its digital arm slumped 38 per cent.

The group’s woes were compounded by its worst week of losses for two years in January when punters celebrated wins by Chelsea, Arsenal, Manchester United, Tottenham, Southampton, West Ham and Stoke. This cost the company £14m in losses.

“After a weak January, we saw improved wagering trends over the remainder of the quarter,” its chief executive James Henderson, who replaced the company veteran Ralph Topping last year, said. “Online wagering grew 20 per cent in February and March and 29 per cent for the Cheltenham festival.”

William Hill failed in an attempt to buy online casino and poker company 888 in February after a “key stakeholder” in its target blocked the £723m bid.

Experts expect the industry to consolidate following setbacks, including the “point of consumption tax”, which was introduced by the Chancellor in December and means that all bets placed online in Britain are subject to a 15 per cent levy. Despite its introduction, Mr Henderson believed the company is “well positioned to benefit” by investing in technology and marketing.

William Hill shares fell nearly 3 per cent to 361.2p.

Greg Johnson, an analyst at Shore Capital, described the results as a “mixed bag” but retained a “buy” recommendation because of potential for growth in the company’s online division. “Adjusting for regulatory developments, operating profit would have been nicely ahead,” he added.

Meanwhile, Newbury Racecourse in Berkshire saw its turnover rise 7 per cent to £12.4m last year after attendances rose 6 per cent to 196,000. The total prize money handed out for races was up 7 per cent to £3.9m.

The Beach Boys were among the musical acts to perform at Newbury in 2014.

The chairman, Dominic Burke, who runs the City insurance broker JLT, said: “Our strategy of developing the racecourse as a profitable leisure, entertainment and events business with racing at its core has progressed.”

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