Betfair Plc reported a 26% increase in revenues £237.6 million (H1 2014 £188 million) for its H1 2015 performance.
The operator stated that its strong performance had been driven by a customer base growth, which had been supported by favourable sporting results and improved gaming cross-sell throughout Betfair’s product inventory.
Improved revenue performance, saw Betfair report a strong EBITDA performance of £73.9 million up 51% to 73.9 million (H1 2014 – £48.9 million).
The operator reported its active customer base up 50% to over one million active players. Its popular Cash-Out and Price Rush features had seen mobile revenues more than double, the vertical accounted for more than 70% of sports betting revenue.
Sports customers using Gaming products for the first time saw the operators igaming revenue up 44% following a 63% increase in the number of
Betfair’s strong H1 2015 opening has led to the operator senior management expecting to report its full year EBITDA to be between £97m and £103m
Breon Corcoran, Betfair’s Chief Executive Officer, said:
“These results demonstrate strong delivery against our strategy for achieving sustainable growth that we outlined two years ago. We have substantially strengthened our competitive position by investing in products that differentiate Betfair and by enhancing our marketing capabilities in a crowded market place.
Our focus on regulated jurisdictions is also paying off. Revenues from sustainable markets grew by 32% in the first half of the year and now contribute more than 80% of total revenues.
Betfair has also delivered considerable operational gearing and, as a result, strong top line growth has led to substantial EBITDA margin expansion and strong cash generation. In the last 12 months, Betfair has generated underlying free cash flow of £114.1m and had £271.4m of corporate cash at 31 October.
In view of this, and the substantial cash flow generated, we are today announcing a £200m return of capital to shareholders and an increase in our targeted dividend payout ratio.
This will leave Betfair with a more efficient capital structure whilst retaining flexibility to invest in the business and pursue strategic options.
The performance in the first six months of the year, coupled with the momentum we take into the second half, means we now expect EBITDA for the full year to be between £97m and £103m.”
Betfair Performance Breakdown H1 2015