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

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

5 top UK tech stocks
Investments

5 top UK tech stocks

The UK market has never been considered a fertile hunting ground for tech stars. But there are plenty of promising companies beyond the old economy, s…
23 Mar 2023
Where will house prices go in 2023?
House prices

Where will house prices go in 2023?

We explore what could happen to house prices in 2023 as the market continues to slow down.
24 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023