(RTTNews) - William Hill PLC (WMH.L: News ), a betting and gaming company, said Monday that third-quarter net revenue slipped 3% from last year, hurt by unfavorable results for bookmakers in football and horse-racing as well as absence of draws in the Premier League. However, the company's full-year expectations for Retail segment remain broadly unchanged on higher-than-expected turnover and lower costs.

In a trading update for the third quarter, the bookmaker noted that gross win and net revenue margins across the business were hit by sporting results going in the customers' favor. Group net revenue decreased 3% in the third quarter, and was up 3% in the year-to-date period.

As the leading clubs won consistently, football results were unfavorable for bookmakers through August and into September. Also, there was an absence of draws in the Premier League, which normally represent about 25% of outcomes, but occurred in only 6% of matches up to the end of September. Additionally, the year-over-year comparison turned out to be tougher as in August 2008, the company had achieved a higher-than-average margin on football.

The company noted that the football margins have returned to being in line with historic trading in the latter part of September and early October. Horse-racing results continued to be unfavorable in July and August, but some recovery was seen in September.

According to Ralph Topping, Chief Executive of William Hill, "Business volumes both in our shops and online since the beginning of the football season in mid-August have been good with strong turnover in our online Sportsbook and encouraging levels of recycling in Retail. In addition, our machine business continues to perform well. In what has, to date, been an extraordinary year for sporting results, football and horseracing affected us again in August and into September but margins have returned to more normal historic levels since then."
The UK-based company delivers its products through three channels: Retail, William Hill Online and telephone betting.

The Retail segment witnessed improving levels of turnover over-the-counter, or OTC, in addition to further growth from machines. In the segment, OTC gross win was down 21% in the third quarter, with a gross win margin of 15.4% as a result of the sporting results impact. However, OTC turnover improved, and was down only 4% in the quarter, compared to an 11% decline in the first six months, reflecting stronger trading since the start of the football season and recycling of customer winnings.

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