Bookie William Hill (WMH) says its transformation programme is helping to drive sales online and wagering growth across the business, news that sends the shares 7.9% higher to 272.45p.
William Hill has built momentum online as UK Sportsbook amounts wagered jumped 2% in the six months ended 27 June, while UK gaming net revenue rose 9%.
In its retail division, William Hill said the amounts wagered increased by 2% and gaming sales were up 3% - but these gains were limited due to poor football results.
Encouragingly, the bookie is now growing UK market shares in online retail at or above market growth rates. William Hill is on track to deliver £40m of cost savings by the end of 2017.
Unfortunately, adjusted operating profit softened by 1% to £129.5m in the first half as higher costs, gambling taxes and levies acted as a drag on profitability.
Numis Securities' Richard Stuber is cautious about William Hill’s performance in Australia, where regulatory risks are a headwind for investors to weigh up.
These issues include the banning of online in-play sports betting in Australia last October and a potential federal point of consumption tax and prohibition of credit betting.
Davy Research analyst David Jennings writes: 'What will concern investors is that the business only broke-even in the first half and this is before the credit ban comes into place and before further possible tax increases are announced.'
