STRONG HALF YEAR FROM BETFAIR
14th December, 2011 at 03:52:29
After tax profits soar 43% to £ 20.6 million.
Online betting and gaming group Betfair
unveiled strong first half figures for the period ended 31 October 2011 this week, with underlying after-tax profits up 43% at £ 20.6 million.
Underlying group revenues rose 1% to £ 191.3 million and adjusted EBITDA was up 36% at £ 42.4 million.
On a reported basis revenues were down 10 percent; adjusted EBITDA was up 13 percent; and after-tax profits were up 156% at £ 17.4 million.
Financial highlights included:
* Core Betfair revenue of £ 170.3 million, with 12% year-on year growth in Q2
* Core Betfair adjusted EBITDA up 26% to £ 44.6 million
* Group underlying earnings per share up 43% to 19.5 pence. Interim dividend proposed of 3.2p pence per share
* £ 23.7 million returned in share buyback to date
Operational highlights included:
* Strong Exchange performance: Q2 non-risk revenue up 20% year-on-year
* New mobile products drive growth: 16.2 million bets (up 103 percent) and £ 9.1 million of revenue (up 88 percent) in H1
* Encouraging current trading: Core Betfair revenue up 13% in Q3 to date
* New website to be launched shortly: delivering much improved speed, reliability and search functionality
In his last report as CEO Betfair, David Yu said:
I am pleased with our performance in the first half of the year, with record revenues and profits. After a solid first quarter, we delivered a strong second quarter with Core Betfair revenues up 12 percent. These results were driven by an excellent Exchange performance following a very positive start to the football season and improved monetisation of activity.
Mobile betting has continued to grow strongly in the first half, with double the number of mobile bets placed compared to the same period last year. We have continued to make progress in the third quarter, with 41% of UK Exchange customers placing a mobile bet in November, driving mobile revenue to around 9% of Exchange revenue.
"We are continuing to focus our investment in the product and will shortly be introducing mobile gaming as well as further updates to our existing mobile sports betting applications, leaving us well placed to deliver further growth from this important channel.
We have maintained our positive momentum in the third quarter, with Core Betfair revenue up 13% against the prior year. Whilst the economic environment remains uncertain, we expect to make further progress in the second half and remain comfortable with the outlook for the financial year."
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