Betfair Publish Positive Net Earnings for Q3 2013

betfairiGaming operator Betfair published Q3 2013 performance reports, figures saw Betfair report increased earnings despite a decline on revenue. The London stock exchanged listed operator reported that company revenues had dropped by 6% o £188m (€227m/$308m) for the six month period leading to October 2013.

Decline in gaming revenues was attributed to Betfair withdrawing operations and marketing from Greece and Germany – regions that senior management felt provided the company with uncertain financial returns.

However the operator interim results  revealed that  EBITDA revenues had increased by 16% to £48.9m while profit before tax increased by 56% from £20.9m to £32.5m for the reporting period. Betfair stated that the positive results shown in their EBITDA earnings could be attributed to strategic cost cutting  measurements undertaken by senior management in order to save costs and protect operating margins. Betfair reported that recent operational restructuring of certain operational areas had seen the company save £18m.

The positive net results published by Betfair saw the company increase its interim dividend by 50% to 6p per share.

A statement published by CEO Brain Corcoran said: “Betfair have continued to make progress against the strategic objectives we set out in December 2012 and has delivered a good first half performance.Our focus on regulated jurisdictions and Sportsbook-led acquisition continues to be successful. Notwithstanding this incremental investment, the progress we have made in the first six months means we expect underlying EBITDA for the full year to be between £82m and £87m.”

Betfair remain bullish about future performance.The company underlined that they viewed future strategy and growth coming from operations in the Italian and US markets. Betfair have begun to target these regions by targeting marketing campaigns in the newly igaming regulated state of New Jersey, launching interactive sports betting products in partnership with the Atlantic City’s Trump Plaza Hotel. 

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