William Hill partners with Playtech
The bookmaker William Hill has concluded a key partnership with the software provider Playtech that makes them the largest online gaming and sports betting empire.
William Hill had announced earlier that their figures are rising, still unaffected from the current economic slump.
The bookmaker has acquired key parts of Playtech business such as customer care operations, marketing affiliate programme, websites and gaming brands. In addition William Hill have also concluded a five-year licensing agreement with the software maker for casino and poker, with the option to expand business into development of new products.
William Hill's CEO, Ralph Topping, said for the press that the deferred acquisition was a transformational step, which made them the most profitable European online sports and gaming provider.
The new company William Hill Online will be a subsidiary under William Hill's control. It will combine current operations with the newly acquired assets from Playtech.
Expected net revenues for William Hill Online till the end of the year amount to ?190m and gross profit before taxes to ?75m. Playtech hold a 29 per cent shares in William Hill Online, however William Hill has an option to buy its stake in the next four to six years.
William Hill have marked a 9 per cent rise in gross profit for the period from end of June to mid October. Gross profit is the amount the company gets after bets are paid out. Recently their gross wins rose with 7 per cent mostly due to lucky sports results.
Mr. Topping expects a possible recession blow, however not before end of the year. William Hill's shares have risen 14 per cent while net debt by September dropped with ?27.4m to ?1,031.5m.
Ralph Topping landed the CEO post in February and is doing well in changing the business. One of his next challenges will be to renegotiate a debt of ?1.2bn due for refinancing in Feb 2010.
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