Sporting turnaround helps William Hill to improve margins

The group's recovery in the fourth quarter of 2009 followed a difficult summer, when Premier League football matches yielded few draws and plenty of victories for favoured teams such as Manchester United and Chelsea.

The pattern has changed in recent months and meant gross margins for 2009 returned to the normal range of between 17 per cent and 18 per cent. Net revenues for the final quarter were up by six per cent, leading to a four per cent gain for the year as a whole and full-year earnings of around 250m.

William Hill made no mention of current trading in its brief update but analysts have said this year will have got off to a difficult start as icy weather caused high levels of horse racing and football cancellations.

Wyn Ellis, an analyst at Numis Securities, increased his projection for 2010 earnings by four per cent to 280m.

However, he added: "We believe that the outlook for land-based gaming remains difficult and uncertain – cyclical recovery is not a given and rises in unemployment could weigh heavily."

William Hill said its online operation delivered a strong performance in the fourth quarter, with earnings for the full-year up 35 per cent.