Betfair Group Beats Expectations

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

LONDON -- Shares in Betfair  (LSE: BET  ) sprung up 3.5% in early trade this morning, putting on 30 pence to reach 875 pence, following an unaudited trading and strategy update from the world's largest Internet betting exchange.

Estimated revenue of 387 million pounds and underlying EBITDA of 73 million pounds came in at the top end of the company's expectations, while Betfair's cash balance as of April 30 saw a 50 million pound increase to 168 million pounds from 118 million pounds in 2012.

Cost savings increased to around 30 million pounds, up from 20 million pounds in 2012, following companywide restructuring, a new management team coming in and a reduction in the number of staff by around 500. 

CEO Breon Corcoran commented:

We have had early success and shown that the combination of the exchange and sportsbook can deliver a sustainable competitive advantage. In the last couple of months, our sportsbook-led acquisition focus has resulted in improved marketing efficiency and a two fold increase in the number of U.K. customer activations. We are confident this will enable us to accelerate revenue growth in our most important market and I believe we can grow in-line with the market in the medium term.

While we are rightly focusing on regulated jurisdictions, primarily the U.K. and Ireland, I firmly believe there is a significant international opportunity. We have recently seen positive regulatory momentum in Italy, Spain and the USA. In addition, revenue from the countries where we have ceased marketing is proving relatively resilient due to the uniqueness of our exchange.

The year also saw Betfair take on a record number of customers, up 108% year on year, since the sportsbook launch, which has benefited the U.K. customer base by an 18% increase year on year in the last six months. The bookmaker also revealed "evidence that the exchange and sportsbook are complementary [as] 24% of football customers are already using both products."

I highlighted Betfair as a "sin stock" to watch back in September last year and, though I haven't taken the plunge yet, if the company continues to churn out good results then it may well pique my interest sooner rather than later.

If you're looking for another company that should soar in price, though, we've pinpointed our favorite growth share and produced a special report in which we evaluate its finances, risks and growth prospects going forward. Simply click here to get your copy delivered to your inbox immediately -- completely free.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2414709, ~/Articles/ArticleHandler.aspx, 10/27/2016 9:14:12 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,199.33 30.06 0.00%
S&P 500 2,139.43 -3.73 0.00%
NASD 5,250.27 -33.13 0.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
BET $0.00 Down +0.00 +0.00%
Betfair Group CAPS Rating: No stars