UK-listed bookmakers William Hill hailed a “positive start” to the year despite a flat performance at its mainstay UK retail operations.

Hills released a trading update on Tuesday covering the first 17 weeks of 2017, during which group revenue rose 9% from the same period last year. Most of the group’s divisions reported strong double-digit revenue gains while the core retail business managed only a 1% year-on-year rise.

Total online revenue was up 16%, with gaming revenue up 8% and sportsbook revenue surging 26%. Sportsbook handle improved 9% and margins rose 1.2 points to 7.5%, primarily due to punters backing the wrong horses.

The sportsbook benefited from a new Android app and a 24% rise in new customer signups during the Cheltenham and Aintree racing meets. The Vegas gaming product got a new front-end in March and single-wallet functionality in February, and Hills has hired 75 additional developers to accelerate the pace of product development.