Betfair Group's annual revenue and earnings ahead of guidance
Betfair Group's full-year revenue will be ahead of its guidance driven by stronger than expected UK sportsbook revenues, the online gaming group said in a trading update.
Betfair Group's full-year revenue will be ahead of its guidance driven by stronger than expected UK sportsbook revenues, the online gaming group said in a trading update.
The company estimates revenue of £387m for the year ended April 30th, down from £388m the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) is also expected to drop to £73m from £87m but exceed initial forecasts.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Results were boosted by growth in new customers which increased 108% year-on-year following the launch of sportsbook, its sports gambling division.
The group has achieved a 74% rise in games cross sell since sportsbook started operating last year.
The UK customer base has climbed 18% year-on-year in the past six months.
In December, the firm identified opportunities to reduce costs over the next two years by £20m. Betfair now expects cost savings to total £30m.
Following an extensive restructuring, the gambling group cut jobs by 500 which is anticipated to reduce costs by £23m.
"We have achieved much in the five months since we set out our strategy in December," said Chief Executive Officer Breon Corcoran.
"The business has gone through significant change. A new management team is in place and a wide ranging restructuring has been completed ahead of schedule, allowing us to increase our cost savings substantially. At the same time, the pace of product delivery has accelerated, including the development and launch of a new sportsbook within three months."
He said the company was well placed to compete in an industry facing substantial changes due to its unique technology, customer value proposition, UK scale and strong balance sheet.
Shares rose 1.48% to 857.50p at 09:00 Tuesday.
RD
-
RICS: Property listings rise, but buyer demand cools
New listings are putting a spring in the step of the UK housing market – but where have the buyers gone? We delve into the latest Royal Institution of Chartered Surveyors (RICS) survey
By Ruth Emery Published
-
How to protect your money from the dark web
The dark web has become a hotspot for credit card fraud and other financial crimes. Here’s how you can protect your private details and stay safe
By Oojal Dhanjal Published