Looking at the results for H1 2007, we can see that William Hill's turnover in the retail division was significantly greater than that achieved by Ladbrokes. William Hill stated that within the retail estate gross win from over the counter (OTC) increased by 4% while FOBT/AWP (machines) gross win was up 16%.

Ladbrokes reported a decline in OTC gross win, partly due, it said, to a substitution effect with its new FOBTs. Ladbrokes said that FOBT gross win had increased by 19% to £651 for the period.

In relation to gross win, we see the continuation of a trend, begun in H1 2006, with Ladbrokes achieving better gross win figures in each of the three key divisions; retail, telephone and online. William Hill, however, once more converted a higher proportion of its retail gross win into EBIT.

For the first time since our analysis began, Ladbrokes outperformed Hills in the online division, with significantly better Gross Win and EBIT figures, and a higher conversion rate of online gross win into EBIT.

Turnover at William Hill's telephone betting operation has declined significantly, compared with the corresponding period last year.

EBIT at William Hill was up £1.2m to £161.2m (2006: £160.0m); compared with an increase at Ladbrokes of 28.9% to £195.0 million (H1 2006: £151.3 million). During the same period Paddy Power saw EBIT growth of 108% to €40.8m.

For comparative purposes we provide a brief analysis of H1 results from both companies for 2003, 2005 and 2006.

Looking at H1 2003, for example, we see that whilst Ladbrokes recorded higher total turnover and gross win figures than William Hill, Hills were able to convert a higher proportion of their gross win into EBIT across the three key divisions of Retail, Telephone and Online.

Looking at the figures for H1 2005, we see that Ladbrokes achieved greater turnover in retail, telephone and online, but that Hills were yet again able to convert a greater proportion of their gross win into ebit in the key areas of Retail and Online.

Looking at the H1 results for 2006 we see that for the first time William Hill has surpassed Ladbrokes in terms of total turnover (the acquisition of Stanley's LBO's being a major contributing factor here). It is also notable, however, that for the first time during the period under review Ladbrokes achieved better gross win figures in each of the three key divisions; retail, telephone and online. However, the overall trend is continued, with William Hill once more demonstrating a greater ability to convert a higher proportion of gross win into EBIT in the all important retail and online betting divisions.

Source = Bettingmarket.Com research