Betfair outperforming World Cup year

Betfair outperforming World Cup year

Wednesday, November 25, 2015 Totally Gaming
CEO Breon Corcoran highlighted the strength of Betfair's strategy

Betfair shares were up more than three per cent today (Wednesday) as the gaming operator revealed impressive revenue and profit figures for the first half of 2015.

In a trading update, the company – which is set to merge with Paddy Power – reported revenue of £274.4m (€387.6m/$414m) for the six months to October 31, which was 15 per cent higher than the same period in 2014 despite that half-year including the Fifa World Cup.

Meanwhile, operating profit was up 12 per cent year-on-year to £67.2m and sportsbook volumes grew by 93 per cent.
Chief executive Breon Corcoran said the positive performance was propelled by a shrewd strategy.

"Betfair traded strongly in its key markets throughout the first half of FY16,” Corcoran 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.

“Our strategy of focusing investment in markets with good regulatory visibility continues to pay off.

“Betfair's relatively low exposure to unregulated jurisdictions meant that even though revenue decline in these markets accelerated, primarily due to the impact of suspending operations in Portugal, it was more than offset by growth in sustainable markets.”

The company said that it will publish shareholder documentation relating to its proposed merger with Paddy Power on Friday, November 27, adding that the deal is “on track for completion” in Q1 2016, subject to shareholder and regulatory approval.

Paddy Power, whose shares were also up by more than one per cent today, reported net debt of €96m earlier this month, but also said its total net revenue rose 9% between July and November.

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