William Hill profits shrink after bookmaker pays £44m government duties

William Hill profits slid 12% to £155.7m (€220.67, $241.3) in the first half of 2015 after tax reforms to the gambling industry hit the bookmaker. Operating profit in the 26 weeks to 30 June narrowed from £176.9m a year earlier and left the group with after tax profits of £69.5m.

The group's dividend rose by 0.1p (3%) to 4.1p a share while net revenue was flat at £808.1m. CEO James Henderson said the firm's fortunes were hit by £44m in gambling duties but pointed to growth overseas.

Henderson said: "Whilst factors such as the Point of Consumption Tax and the increase in the Machine Games Duty rate have impacted our cost base as expected, we continue to progress our strategy and invest in our long-term growth drivers. Looking ahead, the Board is confident that the Group remains well positioned to gain share in key markets, notwithstanding the impact of increased taxes and regulation.

"In UK Retail, we anticipate some further impact from the £50 journey during the second half. We are making good operational progress in building a leading business in Australia, repositioning William Hill Australia in the key recreational segment in that market."