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
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
