Betfair moves focus to regulated markets

FTSE 250 online betting firm Betfair said it is reducing its exposure to markets with an uncertain regulatory future as new Chief Executive Officer Breon Corcoran announces significant cost savings.

FTSE 250 online betting firm Betfair said it is reducing its exposure to markets with an uncertain regulatory future as new Chief Executive Officer Breon Corcoran announces significant cost savings.

Betfair said the UK business continued to perform well during the third quarter to date while regulatory impacts on international revenues continues to drag on growth.

The firm, which said it would pull out of Germany and Greece because of regulatory uncertainty, said group revenue increased 5% to £200.6m in the six months to October 31st. A good performance in sports and mobile offset weaker trading in games.

Corcoran, who said he had already identified cost savings of £20m, reported a 2% decline in underlying EBITDA from continuing operations to £42.3m.

Current underlying trading is in line with expectations with revenue up 7% in the third quarter to date after adjusting for regulatory impacts in Spain, Germany and Cyprus.

Corcoran noted: "The review we have carried out over the past four months has demonstrated a number of strengths. Betfair has a unique product offering, strong brand affinity and scale in the UK. However, we have also identified a number of areas requiring change and fixing these will take time. "

"Recent regulatory developments have been challenging and we are reducing our exposure to markets with an uncertain regulatory future. We will focus investment within regulated markets with sustainable revenues."

Betfair said it has reviewed its dividend policy and the medium term payout target had been increased to 40% of profit after tax.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Bitcoin: fool’s gold or the new gold?
Bitcoin

Bitcoin: fool’s gold or the new gold?

With bitcoin hitting new highs last week, and close to becoming a mainstream investment, is it really gold for the 21st century?
15 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
The MoneyWeek Podcast: bitcoin special
Bitcoin

The MoneyWeek Podcast: bitcoin special

Merryn talks to bitcoin experts Dominic Frisby and Charlie Morris to get the lowdown on the cryptocurrency to find out why it's such a huge global phe…
15 Jan 2021
Free 6 issue trial then continue to