William Hill has reported its third quarter results for 2011 suggesting that it leaves the company on track to hit full year targets. The statement covers the 13 weeks ending 27th September 2011. The company has advised this week that the “staff disruptions” at oversees operations have been resolved after a number of meetings in Tel Aviv.

"The situation in Manila was resolved last week," the company said in relation to the unofficial strikes. "These discussions were led by William Hill Group and William Hill Online senior management, together with assistance and input throughout from William Hill's joint venture partner, Playtech."

In relation to the company financials the highlights included:

- Group net revenue grew by 2% and was up 5% in the year to date;

- Retail net revenue decreased by 3% and was flat in the year to date;

- Online net revenue grew by 28% and was 25% up in the year to date; and

- Group Operating profit was 22% lower in the period, 3% lower in the year to date.

The chief executive, Ralph Topping, added: “We have delivered a solid performance in Q3, in spite of a highly competitive market place and a tough consumer environment. We continue to invest in product, pricing and innovation.

"Across Europe, we are now investing in a highly focused way in key territories such as Italy and Spain for the long-term benefit of the business.

Topping suggested that weaker year-on-year margins, planned online investments, and loss making from the telephone channel had resulted in a 22% decline in group operating profit in Q3 of 3%. Online net revenues compared to the same period last year was up 28%.

Nett debt fell to £426.8 million compared to £460.1 million as of 28th June 2011.

"Sportsbook continues to perform strongly with amounts staked 51% higher than in the same period of 2010, including growth of 61% in in-play turnover and more than 250% in mobile betting amounts staked. The Sportsbook gross win margin was 6.9 percent, which was 200 basis points lower than in the same period in 2010. As a result, net revenue grew 17 percent.

"On the gaming side, Casino growth has been excellent, up 41 percent, including 40% growth from products designed for cross-sell from sportsbook operations. Overall, gaming net revenue grew 34 percent, including 14% growth from Poker and 9% from Bingo.

"William Hill Online launched a licensed internet Casino site in Italy at the start of the quarter. Initial performance has been above expectation, with early figures from the Italian regulator, AAMS, indicating William Hill Online is the strongest performing of the non-domestic new Casino entrants to the Italian market.

"Mobile continues to grow strongly following the launch of the new mobile Sportsbook. Sports-betting turnover was up more than 250% in the quarter and total net revenue from mobile betting and gaming increased by more than 300 percent."

In relation to the disputes in Israel, Philippines and Bulgaria Topping suggested the company had reviewed and increased controls at the WHO operations.

The company statement also criticised UK plans to review legislation and tax rules suggesting the tax rules may have an impact but regulation would make little difference to the company.

"In the Group's view, there is no public protection risk in the current regime and, therefore, no real justification for the proposed dual regulation," the statement observes. "However, should the DCMS pursue this route, the Group is well placed as William Hill Online already operates to UK standards. The Group intends to be fully involved in shaping a proportionate and effective regime, including appropriate enforcement measures.

"Arising from this announcement, HM Treasury announced that they would review the current legislation and framework of taxation as it relates to offshore companies targeting UK consumers. The Group's Online and Telephone businesses are currently based in Gibraltar and, as such, the Group could be affected by any changes but it is too early to assess the impact as HM Treasury has not yet advocated any specific proposal."

In a separate statement detailing the Tel Aviv situation the company confirmed agreements had been reached and seven senior managers now no longer working for the company.

"The Group can now confirm that normal operations have resumed and that William Hill Online remains committed to its operation in Tel Aviv," the notification concludes.

Mor Weizer, the chief executive of Playtech who is a joint partner of WHO added:

"Following today's announcement by William Hill, Playtech is pleased to note that the disruption within William Hill Online has been resolved.

"Playtech's senior management worked very closely with William Hill to find a resolution to the disruption within William Hill Online, the joint venture between William Hill and Playtech.

"William Hill Online remains important to Playtech and its stakeholders and the company will continue to give William Hill all necessary support to ensure the business continues to go from strength to strength."

Weizer also added: "Having been asked by William Hill's Chief Executive, Ralph Topping, to assist, I am very pleased that this issue is now behind William Hill Online. It is very positive for both shareholders that the business can now continue to move forward."