Online Gambling Betfair's Remarkable Growth

Published Wednesday, August 05, 2009 -

Betfair is a miracle story in this age of collapsing companies, busted banks, and doom and gloom for car industries and others. Betfair, the mega online wagering exchange in the United Kingdom showed them all this week that there is light at the end of the tunnel. It's revenues have leaped another 27 percent to £303m so far this year up to April 09.

Betfairs revenues have doubled in the last three years, despite investing heavily in expansion offshore it continues to grow it's market share and build it's customer base, without increasing debt.

Impressive figures from Betfair fueling the rise in fortunes was a 20% jump in its sports division and 31% growth in its games division. It's also profiting overseas, where nearly half of its revenues are now from its international business ventures. This year, new acquisitions include the TVG Network in the USA which was recently purchased for $50 million USD. Betfair has still managed a profit of £72m, up 29%. It now has 652,000 registered users which is up 25% from the previous year, with some £240m deposited in their online accounts. The online exchange model, which allows people to act as either bookie or punter, clearly looks like a better value option than the high street operators offer and since Betfair takes its commission either way it is pleased with the results.

For a company that began less than ten years ago, Betfair has done extremely well. Investors, about half of which are a Japanese bank and a private equity group, at some point will want to reap the rewards of their input. There are rumours of a floatation of stock options that may take place soon.

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