Online Gambling Exchange Betfair On Track Financially

Published Friday, September 06, 2013 -
Online Gambling Exchange Betfair On Track Financially

Betfair Group is the world's largest Internet betting exchange. The company is based in Hammersmith in West London England. In 2011 Betfair went offshore and became registered and licensed in Gibraltar and since 9 March 2011 its betting exchange has operated under an offshore license. The company was founded in 2000 by Andrew Black and Edward Wray.

Betfair was offered on the London Stock Exchange with a stock symbol of BET on 22 October 2010 at £13, valuing the company at £1.4bn or $2.2bn. Betfair has been part of considerable controversy over its history sparking the wrath of consumers and government authorities.

Financially the controversy has hurt the company which has weathered the downturn well. The firm saw revenues fall 13% to £90.4m in the first quarter. Cost cutting measures installed by the firm boosted earnings margins allowing the company to say it has turned the corner and is on the way to recovery and a profitable year. It was reported that revenue in ‘sustainable’ or what the firm calls regulated markets fell 7% to £69.9m in the three months ending July 31, while ‘other’ revenues were off 28% to £20.5m.

Breon Corcoran, Chief Executive Officer of Betfair commented that the first quarter results were “in line with our plan” and the company remained on track to meet its full year expectations.

Corcoran has been instrumental in the restructuring of Betfair after he announced last year that the company would refocus its efforts on regulated or sustainable markets.

Betfair withdrew from unstable jurisdictions such as Greece, Cyprus and Germany as well as the delayed approval process encountered in Spain which created a revenue shortage of £6.5m in the first quarter financial returns. The ‘sustainable’ portion of Betfair’s overall revenue from in the UK, Ireland, Denmark, Malta, Gibraltar and the US increased to 77% from 73% in the same quarter last year.

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