This story was published more than 9 years ago.
Online betting exchange Betfair has released its full year financial results, showcasing a 15% jump in profits from its core businesses as well as strong current results due to betting on the Euro 2012 football tournament.
Key financial indicators for the period ending April 30th, 2012 were:
Core Betfair revenue growth of 10% in H2 resulted in full year revenue up 6% to £349.5 million
Core Betfair adjusted EBITDA up 15% to £92.1 million
Core Betfair adjusted EBITDA margin up 2.1ppts to 26.4%
Group underlying earnings per share up 21% to 41.1 pence per share
Final dividend up 19% to 7.0 pence per share to give a full year dividend of 10.2 pence per share
Completed £50 million share buyback in the year
Operational highlights for the period were:
Good exchange performance: Non-risk sports revenue up 11% in FY12
Mobile driving growth: 44 million bets (up 122%) and £22.7 million of revenue (up 97%)
Technology re-architecture and data centre consolidation completed allowing focus on new products
Next generation sports products launched, including ‘fixed odds’ bets, which will drive future growth
Strong current trading: Core Betfair revenue up 18% in the last 8 weeks
Betfair's strong performance has carried over to the new year as well, with Interim CEO Stephen Morana stating that core revenues were up 18% in the first two months of the new fiscal year.
Speaking about his company's performance Morana said:
“We have delivered double-digit net gaming revenue growth in Core Betfair in each of the last three quarters and a healthy increase in profits." Morana said. "We have also started to deliver on our strategic objectives, including the launch of important new products that will drive future growth."
“Our unique Betting Exchange has continued to be the main driver of growth this year, with contributions from all major sports."
“Mobile betting has been a key feature of the year for the industry and our substantial investment in the channel has given us a clear product advantage. The increasing penetration of smartphones and the convenience of the channel for customers have led to strong growth in mobile usage and revenues. In April alone, customers placed over 6 million mobile bets and almost 50% of UK and Ireland actives used the channel."
"We are making further enhancements to our mobile exchange betting product and have recently broadened our offering to include sports multiples and casino games on mobile."
“We have now completed the major re-architecture of our technology platform, which allows the introduction of new customer facing products and has enabled substantial improvements to our website. Most recently, we have commenced the rollout of our next generation sports products, which integrate our risk product with the Exchange to create a one-stop shop for sports betting."
“FY13 has started well, with Core Betfair revenue up 18% in the first 8 weeks against the prior year, driven by the European Championships and a return to historical margin levels in risk products, as well as the continued success of our value led marketing campaign and further mobile growth."
"New products and the opening up of new geographies leave us well placed for future growth. I am pleased to have had the opportunity to lead the business in this interim period and would like to thank all employees for their support.”
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