In a note to the London Stock Exchange this morning, William Hill reported a strong performance in its retail business but said the performance of its Internet unit had continued to be "disappointing."
The company projected full-year pre-tax earnings of £285 million, though the news was not enough to rally its sluggish shares, which have lost roughly 40 percent of their value since hitting a 52-week high in October. Shares were down 32.25p, or 7.44 percent, to 401.00 -- a 52-week low.
Regarding its Internet sportsbook, the company said that following a November 2007 review, it had decided to terminate its proprietary NextGen technology program. In place of NextGen, it said it planned to implement an externally-developed, third-party solution. Industry media have that Orbis could be the suitor, although William Hill has refused to address the speculation.
Currently, William Hill's Internet unit accounts for 12 percent of its total gross win.
The new software platform is expected to be implemented by the end of the year, it said, adding that the decision would result in a non-cash impairment charge of approximately £22 million in the 2007 results, with restructuring charges of approximately £4 million in 2008.
Concerning recent rumors of an imminent deal with Turf TV, the company said negotiations were ongoing but didn't elaborate.
It said its search for a new chief executive was progressing and it would update the market when appropriate. In September 2007, former Chief Executive David Harding left and was replaced by stand-in Charles Scott, the group's chairman.