William Hill, the bookmaker, today said a losing streak among punters betting on horseracing helped it score a strong start to the year.
The London-based group said it was confident about its prospects for the rest of the financial year after strong trading across all divisions.
But it added that operating expenses were up 12 per cent on last year, mainly due to higher staff costs caused by extended trading as well as general inflation.
William Hill operates three divisions - UK betting shops, telephone gambling, and an interactive division that allows punters to place bets via the internet.
In an annual meeting trading statement, it told investors that strong trading in the 19 weeks to May 11 had been helped by sporting results in its favour, "particularly for horseracing".
All three divisions - including the over-the-counter business – recorded double digit rates of growth during the period, giving a 22 per cent rise in gross win - the amount left behind by punters after betting - for the group.
In March, William Hill unveiled a 43 per cent increase in pre-tax profits to £201.7 million for the year to December 30, which left it confident of "sustainable profit growth" in the current year.
The bookmaker said today that, in the six weeks since the introduction of the new code of conduct governing fixed odds betting terminals, average net weekly profit per terminal was £400, compared with a weekly average of £380 in 2003.
Extended opening hours and improved contractual terms with suppliers offset the negative impact of the code, William Hill said.
By May 11 the group had 3,500 fixed odds machines and aimed to have 4,000 by the end of June, as well as 1,750 amusement slot machines. These figures were not expected to vary significantly between June and the end of the year.
William Hill said that, as it moved into the second half of the year, comparatives would become tougher due to the major roll-out of machines from April last year.
"The group remains confident about its prospects for the remainder of the year," it added.
