Monday, January 10, 2005
Lem's Weekend Football Picks:
National Football League:
Indianapolis over Denver
New York Jets over San Diego
William Hill suffers as punters clean up
By Times Online
William Hill, the bookmaker, said that profits would be at the lower end of hopes after punters enjoyed a run of success in the second half of last year.
The company, which has 1,600 outlets, joined rivals Ladbrokes and Stanley Leisure in reporting a string of unfavourable sporting results, particularly in racing and games involving football clubs Chelsea and Manchester United.
The performance in the second half offset a stronger start to the year, when bookmakers benefited from the success of rank outsiders Greece in Euro 2004.
In a trading update, William Hill said that it expected underlying profits for the year to December 28 to be in the region of £232 million, compared with £201.7 million a year earlier.
City forecasts for the period ranged between £230 million and £245 million.
The company said: "Performance in the second half of 2004 has been adversely affected by less favourable horseracing results and significantly poorer results in respect of domestic and international football since the start of the current season.
"This trend, which is consistent with normal variations in sporting results, continued to prevail in the closing weeks of the year."
William Hill said that the growth of random number-based betting through mediums such as fixed odds betting terminals and online gambling meant the outcome of sporting results was having a smaller impact on its revenues.
It added that it remained in good shape operationally with costs under control and major investment programmes in place for 2005. The company will provide further details on its performance at full year results on March 2.
Last week, Stanley Leisure said that racing results had been poor at a time when Premiership favourites Arsenal, Manchester United and Chelsea were enjoying winning runs. It now expects to match the previous year's profits haul of £41.8 million after also being hit by a winning streak from a "major player" at one of its casinos.
William Hill shares stood 8p higher at 553.5p in afternoon trade.
