Betfair delivers in half year report

Online betting exchange Betfair’s half year fiscal period ending October 31, 2015 delivered strong results with a reported revenue rise of 15 percent to GBP 274.4 million against a strong comparative period that included the World Cup.

Results were driven by mobile and a 93 percent increase in Sportsbook stakes.

Key performance highlights for the period include:

– Revenue up 15 percent to GBP 274.4 million (HY1/2015: GBP 237.6 million).

– Sportsbook stakes up 93 percent.

– EBITDA up 9 percent to GBP 80.5 million (HY1/2015: GBP 73.9 million), notwithstanding GBP 26.8 million of additional POC tax

– Operating profit amounted to GBP 67.2 million (HY1/2015: GBP 59.9 million), up 12 percent.

– Gross profit increased 7 percent to GBP 214.0 million (HY1/2015: GBP 200.4 million).

– Interim dividend up 67 percent to 15.0 pence per share reflecting continued strong cash flow and the higher payout ratio target of 50 percent introduced in December 2014.

– Sports revenue increased 11 percent to GBP 184.8 million (HY1/2015: GBP 166.6 million).

– Gaming revenue increased 18 percent to GBP 49.7 million (HY1/2015: GBP 42 million).

– Mobile gaming revenue up 86 percent, accounts for 57 percent of gaming revenue.

– Betfair US revenues increased by 38 percent to GBP 39.3 million. Betfair US online casino revenues grew 100 percent to GBP 3.8 million (HY1/2015: GBP 1.9 million).

– Number of active customers in sustainable markets up 31 percent.

– Sustainable revenue mix now 88 percent (Q2 FY15: 82 percent)

– Mobile remains the key growth driver across all products and now represents 76 percent of Sportsbook revenues

– Betfair US revenue up 35 percent following the successful integration of HRTV and strong casino growth.

“Betfair traded strongly in its key markets throughout the first half of FY16,” Breon Corcoran, Betfair’s Chief Executive Officer, said. “These results, which came against a tough comparative period featuring last year’s football World Cup, are ahead of our original expectations and demonstrate the Group’s continued strong momentum.”

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