Business World

Friday 26 May 2017

Betfair shares down as profits dip

Jack Jordan

Betfair Group, the UK internet gaming company that sold shares to the public in October, fell 16pc in London trading after saying first-half profit declined.

Net income dropped 5.3pc to £7.4m (€8.7m) from £7.8m (€9.2m) a year earlier, the London-based company said in a Regulatory News Service statement yesterday.

Betfair incurred one-off costs over the period of £14.7m "primarily associated with" the October initial public offering on the London Stock Exchange, it said in the statement.

Betfair's owners sold 16.2 million shares at £13 each, the company said on October 22. The shares gained 19pc on the first day of trading, then the best performance among London IPOs since May 2009, when Max Property Group surged 30pc in its debut, according to data compiled by Bloomberg.

The IPO was "an important development which we believe will enable us to grow more quickly than we could as an unlisted business", CEO David Yu said in a statement.

The shares fell 191p to close at 990p, the lowest price since the IPO, in London. Betfair has dropped 36pc giving it a market cap of £1.06bn. (Bloomberg)

Irish Independent

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