William Hill Online Gambling Revenue Soars

William Hill continues to go from strength, announcing this week that its operating profits grew 20 percent to £330 million last year on the back of exceptionally strong growth in its online gambling product.

Online gambling soars

Hill's online net revenue grew by 27% year-on-year in 2012, thanks mainly to the continuation of its robust performance in retail and profits, and the fact that a high proportion of sporting results went in its favor. On the other hand, its land-based outlets only grew by 6% in the same period.

Despite the good news, the gambling firm warned that regulatory challenges could force it to withdraw from the lucrative German market. Its German business is worth about £6m. per year in operating profits, but new laws there prompted it to close its local sports betting site last year.

Buyout of Playtech?

William Hill has long been considering buying out online gaming software firm Playtech's share in the William Hill Online joint venture. Hill said in the announcement of its annual returns that the three banks conducting the valuation would submit their figures by the end of February.

The online betting community is also holding its breath on the outcome of Hill's pending acquisition of Sportingbet's online business in Australia. Hill made its formal offer for Sportingbet in December, and should it go through it could mark the beginning of global expansion for the bookmaking giant.