William Hill to increase contributions from online gambling
12th June, 2008
With the launch of its new platform for online sports betting in November, William Hill expects to see contributions from business online to increase by 50 percent.
Currently, 20 percent of William Hill’s gross win comes from online gambling, but it expects to increase that proportion to about 25-30 percent when the new platform is launched 27 November, William Hill CEO Ralph Topping told reporters.
“The kind of growth is there for us to aim for but we’ll set formal targets early next year,” Topping said. “There is a new sense of direction. For too long, we regarded ourselves as bookmakers with a bolt-on activity called gaming. There is a substantial opportunity for growth on the Internet.”
Many analysts say the online gaming industry is fragmented and Topping made it clear that consolidation would be an inevitable factor in securing their growth.
“There will be consolidation within the industry,” Topping said. “It is inevitable as companies like 888 are only 10 or 12 years old. If William Hill is involved, it will be within the criteria that we won’t pay foolish prices and there has to be a good return for investors.”
A research note by Dresdner Kleinwort, recommending buy William Hill stock, said: “The new sportsbook launch is a medium-term catalyst. However, it is the change in culture at William Hill that we believe will provide incremental gains, with a marked improvement in communication with investors – the previous lack of which has been reflected in William Hill’s discount to Ladbrokes.”
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By Michael
