Record revenues boost for gambling company Betfair
Published 12/06/2014 | 02:30
Betfair, the gambling group headed by former Paddy Power executive Breon Corcoran, has delivered a 24pc increase in underlying earnings to £91.1m (€112.8m) for the financial year that ended in March.
The group has captured more customers and said that the first six weeks of the new financial year had continued to prove strong.
Its record revenue and profits were the result of an emphasis on sustainable revenues combined with product and marketing investments that are paying off, Mr Corcoran said.
"Our strategy is working," he said.
Group revenue for the financial year rose 2pc to £393.6m (€487.5m), reflecting what Betfair said was strong growth in Sportsbook and its US arm.
The revenue figure also included adverse impacts from market exits amounting to £13.3m (€16.5m), as well as the absence of a major football tournament during the year.
In the previous financial year, its revenue had included £7.8m (€9.6m) attributable to the Euro 2012 championship.
The increase in underlying earnings was driven primarily by cost savings, according to Betfair. Those savings were ahead of the £30m (€37m) target that had been set by the company.
"The introduction of the Sportsbook, increased television advertising spend and the strengthening of our online marketing capability have broadened our customer reach and led to a 54pc increase in the number of customers acquired in the UK and Ireland," said Mr Corcoran.
"As a result, we have seen three consecutive quarters of double-digit revenue growth in sustainable markets."
Betfair said that mobile continues to be a key channel, with revenue from the segment up by 70pc in the last financial year following a 50pc increase in active mobile customers.