Internet betting firm Betfair has posted their first quarter 2016 financial results, noting a 15% rise in revenues.
The release of the information comes just after it was revealed that the company is in acquisition talks with Paddy Power, which will likely result in a very large consideration being paid for the group. Strong financials from the company could potentially drive up the asking price for the merger.
Key financial indicators for the quarter ending July 31st were:
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:
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
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.
- Revenues amounted to GBP 20.1 million, up 42 percent compared to Q1/2015.
Commenting on the potential merger with Paddy Power Betfair CEO Breon 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."
Speaking about his company's performance Breon said, "These results represent another strong performance. 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".