Bookie Wm Hill hit by internet

BOOKMAKER William Hill expects its profits to fall this year as it wrestles with problems in its internet betting business.

The group, which employs around 2,000 people in Yorkshire in its marketing operations and telephone and internet betting arms in Leeds and Sheffield, said today that full-year earnings would be around £285m for 2007 compared to £292m in 2006.

While its betting shops chain – which provides 82% of its gross win – performed strongly last year and the phone betting business which contributes 5% of gross win was “stable” it said the performance of the internet betting business had “continued to be disappointing”.

It said the internet arm, which is 12% of gross win, has been hit by technology issues and tough competition.

The William Hill board has decided to ditch its own NextGen technology programme and buy in a programme from outside which will see a £22m hit to results for 2007 and another £4m next year.

It is also continuing discussions with Turf TV which is owned by 31 of the UK's 59 racecourses including Ascot, Goodwood, Aintree, York, Cheltenham and Newmarket and provides exclusive TV coverage of races to betting shops.

In a statement today, William Hill said: “The board remains confident in the outlook for the retail business but anticipates that the performance of the

internet channel will remain challenged until the new technology solution is implemented.”

The group is still searching for a chief executive to replace David Harding who left last September.

It will announce its annual results on February 27.