* Henderson leaves after two years as CEO
* Financial chief to take interim charge
* Shares rise 5 pct (Adds further quotes, analyst reaction, updates shares)
By Paul Sandle
LONDON, July 21 (Reuters) - Britain's William Hill has fired Chief Executive James Henderson after only two yearsin the job because the bookmaker's board said he was failing todeliver enough growth in online and international gambling.
Henderson was promoted from the role of operations director when the highly regarded Ralph Topping retired in 2014. Toppinghad helped to make the company Britain's largest listedbookmaker by adding online and international operations to itschain of high street betting shops.
The industry faces higher taxes and tighter regulation. Aseries of mergers among rivals has intensified the competitionfor William Hill as gambling companies increasingly marketthemselves to younger sports fans betting via mobile apps.
William Hill said in a brief statement on Thursday thatHenderson had left with immediate effect, without giving anydetails. Speaking to Reuters, Chairman Gareth Davis did notdispute that the CEO had been fired after more than 30 yearswith the company.
"There remain significant challenges and in the recent pastonline has not performed in line with our high expectations as acompany at the forefront of the market," Davis told Reuters.
Henderson, who received 914,417 pounds ($1.21 million) insalary and benefits in 2015, will be paid 12 month's notice asper his contract but no bonus for 2016, the company said.
Shares in William Hill, which fell to a four-year low of235.5 pence on June 24, the day after Britain voted to leave theEuropean Union, were trading up 5.3 percent at 290 pence at 1027GMT on Thursday.
William Hill said its trading remained in line with theprevious guidance, with an expectation to produce 260 million -280 million pounds of operating profit in 2016.
OFF THE PACE
Analyst Gavin Kelleher at Goodbody Stockbrokers said WilliamHill's online performance had been very disappointing recently.
"In its European online business, amounts wagered have beendeclining on an underlying basis," he said.
"Their competitor set have got an awful lot better in thelast three years and have really raised their game, and WilliamHill has not been able to match them."
Davis said the strategy of diversifying the business byincreasing the share of international and digital revenuesremained valid, but Henderson had failed in its execution.
"At a time of increasing consolidation and competition aswell as regulatory impacts in our core market, it is key thatthe delivery of this strategy is accelerated and the boardbelieve this is best led by a new CEO," he said.
Chief Financial Officer Philip Bowcock, who joined inNovember, had been appointed interim chief executive while areplacement is sought, a process Davis said could take up to 12months.
"Philip has a clear set of priorities for this transitionperiod, principally the turnaround of the online business,"Davis said. ($1 = 0.7564 pounds) (Editing by Kate Holton and Keith Weir)
