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Betfair Releases Subpar First Quarter 2014 Revenues

UK based betting firm Betfair plc has released its first quarter 2014 financial results, noting lower revenues for the period.

Key financial indicators for the quarter ending July 31st, 2013 were:

  • Total revenue down 13 percent at £90.4 million.

  • Revenue from sustainable markets down 7% at £69.9 million.

  • Revenue from other markets down 28% at £20.5 million.

  • Revenues from exchange betting down 13% at £60 million

  • Revenues from gaming operations down 31% at £13.7 million, with online poker underperforming again.

  • Revenues from sports up 18% at £4 million.

  • Sports revenue from sustainable markets was up 52%, however.

  • Revenues from US operations up 11% at £12.5 million, boosted by a five year exclusive deal which commenced in March 2013 to provide Advanced Deposit Wagering in New Jersey.

  • EBITDA up 16% at £24.9 million, driven mainly by cost cutting.

  • Underlying EBITDA margin improved by 6.8% to 27.5%.

  • Total active players down 4% at 530 million, with 396 million from sustainable markets - up 10%.

  • Mobile operations continued to perform strongly, with revenue up 53%.

Commenting on his company's performance, Betfair CEO Breon Corcoran said, "The business is continuing to show that it can compete more aggressively and efficiently in our key markets. We now operate from a far more sustainable revenue base and saw a 10% increase in active customers in sustainable markets in the period."

"In addition, our increased focus on sustainable markets and subsequent cessation of direct acquisition marketing investment in jurisdictions with insufficient regulatory visibility has continued to have an adverse impact on revenue growth."

"The revenue impact in these countries, however, continues to be smaller than previously expected, particularly in the Exchange business."

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