A run of high profile soccer upsets, the purchase of Stanley Leisure's betting shops and customers gambling on roulette video game machines helped William Hill bump up its 2006 profits.
Britain's biggest bookmaker posted a 19 per cent increase in annual core profit to £292.2 million from £245 million a year earlier and said it was comfortable with analysts' average 2007 core profit forecast of £297 million.
The bookmaker added that its gross win in the nine weeks to February 27th had increased by 11 per cent and said its expansion plans in Spain and Italy, in conjunction with joint-venture partner Codere, were coming along.
Chief executive David Harding also rejected speculation that the firm was interested in buying bingo and casino operator Rank. "It's not on the agenda," he said.
The firm saw the biggest growth from its fixed odds video game betting machines (FOBT), with each of its 1,500 or so machines raking in £494 a week and bringing in a combined total of £206 million.
Mr Harding said revenue from the machines would continue to climb with new FOBT games such as poker and blackjack and longer opening hours expected to outweigh higher taxes imposed by the British government.
Morgan Stanley analysts said the strong run of results for bookmakers at the start of 2007 could lift profits above the levels factored in.
But JP Morgan analysts said regular over-the-counter betting in William Hill's shops had been disappointing. - (Reuters)
