Bookmaker William Hill today said a losing streak among punters betting on horseracing helped it score a strong start to the year.

The London-based group said it was confident about its prospects for the rest of the financial year after strong trading across all divisions.

But it added that operating expenses were up 12% on last year, mainly due to higher staff costs caused by extended trading as well as general inflation.

William Hill operates three divisions - UK betting shops, telephone gambling, and an interactive division that allows punters to place bets via the internet.

In an annual meeting trading statement, it told investors that strong trading in the 19 weeks to May 11 had been helped by sporting results in its favour, "particularly for horseracing".

All three divisions - including the over-the-counter business - recorded double digit rates of growth during the period, giving a 22% rise in gross win - the amount left behind by punters after betting - for the group.

In March, William Hill unveiled a 43% increase in pre-tax profits to £201.7 million for the year to December 30, which left it confident of "sustainable profit growth" in the current year.

Monday May 17, 2004