Betfair Enjoys Rise in Sportsbetting Profits
Betfair has been enjoying a profitable year as avid punters enjoy sports betting services with a new found enthusiasm, it was revealed this week. Betfair, the world’s largest internet betting exchange which is based in Hammersmith, West London, unveiled promising statistics despite the pressures exerted by the existing financial climate. The latest reports reveal that pre-tax profits have risen from £17.8m to £26.6m in the year ending April 30. Revenue was also shown to have increased 15pc to £393.3m whilst profits before interest, tax, depreciation and amortisation increased by 27pc to reach heights of £73.2m. Such figures have exceeded market expectations which forecast profits in the region of £61.7m.
The results arrive in the wake of David Yu’s recent decision to step down as Chief Executive of the firm. The company, which has just launched the search for Yu’s successor, said that the statistics marked the beginning of a new era for Betfair which saw its sports revenue grow by 10pc to £245.9m.
Many have attributed the success to the impact of the FIFA world cup which inspired a fresh wave of sporting interest in the country at large. Revenue from football was shown to have generated 42.3pc of sports revenue with horseracing responsible for a further 42.1pc.
Commenting on the findings, CEO David YU praised the achievements of the organisation. “We have delivered a significant improvement in margin resulting in profitability for the year above expectations”, he said. Yu, who confirmed his departure from Betfair early last week, went on to say that the company was hoping to repurchase up to £50m worth of its shares in the months ahead.