World Cup boosts William Hill profits

The World Cup helped William Hill beat first-half profit forecasts today as it announced a deal to enter Spain as part of its…

The World Cup helped William Hill beat first-half profit forecasts today as it announced a deal to enter Spain as part of its plans to expand overseas.

Britain's biggest bookmaker said it had signed a memorandum of understanding with the Spanish gaming group Codere to develop a sports betting business in Spain if deregulation goes ahead as expected.

"Catalunya, the Basque region and Madrid all have draft legislation in process," chief executive David Harding told a conference call. "Our exposure to any one region could be €10 million."

Underlying profit rose 30 per cent to £160 million in the six months to the end of June, boosting its shares 2 per cent to 602p.

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The World Cup generated record revenues of £17.5 million, £10.7 million of which fell in the first half of 2006.

"The early matches were not great for us . . . after 24 had been played, 20 had been won by the favourites, so we were beginning to feel like a boxer against the ropes at that point," said Mr Harding.

"But the latter stages of the tournament were particularly bookmaker friendly - a number of high-profile draws and penalty shootouts, which are good for the bookmaker."