Betfair posts encouraging results

In its first quarterly report for fiscal year 2016, Betfair posted a 15 percent rise in group revenue along with impressive mobile results.

Key performance indicators for the three month period ending July 31, 2015 include:

–    Group Revenue up 15 percent to GBP 135.4 million despite the comparative period containing the World Cup

–    Revenue from sustainable markets up 24 percent to GBP 116.3 million (Q1/2015: GBP 93.7 million).  These markets represent 86 percent of the group revenue.

–    Sustainable revenue mix up to 86 percent (from 80 percent)

–    Mobile revenues up 57 percent, with three quarters of UK customers now using mobile

–    EBITDA up 19 percent to GBP 41.0 million, notwithstanding GBP 12.8 million of additional UK POC tax

In terms of business segments, key performance indicators for the period include:

Sports :

–    revenues increased 8 percent to GBP 89.9 million (Q1/2015: GBP 83 million)

–    volumes up 89 percent, including a 142 percent increase in in-play betting

Gaming :

–    revenue up 27 percent from GBP 19.8 million to GBP 25.1 million.

–    Mobile used by the majority of gaming customers, contributing to an 89 percent increase in revenue from mobile.

Betfair US”

–    revenues amounted to GBP 20.1 million, up 42 percent compared to Q1/2015.

“These results represent another strong performance,” commented Breon Corcoran, chief executive officer of Betfair.  “Double-digit revenue growth against the period containing the World Cup last year is particularly encouraging and was ahead of our expectations.

“Betfair’s current momentum is strong and the business remains well placed to execute against our strategy and to continue to deliver profitable growth”.

On the proposed merger with Paddy Power , Corcoran said: “The proposed merger with Paddy Power is hugely exciting. It would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale. The combined business would be one of the world’s largest online sports betting operators, with revenues totalling more than £1 billion.”

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