William Hill, Britain's largest bookmaker, said group operating profit rose 26% in the 13 weeks to September 25 and was 17% higher in the year to date.
Its closest rival Ladbrokes reported flat third quarter profit yesterday.
The company said it was taking a step towards full control of its fast growing online joint venture today.
It is requesting a valuation for the 29% minority stake held by partner Playtech.
"We are also announcing today that we intend to commence the valuation process relating to the minority share in William Hill Online prior to making a decision on this by the end of the first quarter of 2013," chief executive Ralph Topping said.
The William Hill Online unit was set up in December 2008 as a joint venture with software group Playtech. It made an operating profit of £106.8m last year and reported a 42% rise in profit in the third quarter of 2012.
Both sides will be allowed to hire a bank to try to set a valuation for the stake, which analysts say could be worth up to £400m. Playtech said it was committed to a smooth handover of the stake should William Hill decide to exercise its buyout option.
William Hill also announced management changes in the Online business, putting Andrew Lee in charge as managing director. Lee joined William Hill in March and has been running its mobile operations.
The betting firm is already seeking to buy online gaming company Sportingbet in a £530m deal with smaller company GVC Holdings. William Hill wants to gets its hands on Sportingbet's Australian operations as part of an international expansion which has seen it buy three businesses in the US state of Nevada.
