Betfair set float price

Long, short, Bitcoin, forex - Plenty of alternate market disuccsion.
Post Reply
Tobedotty
Posts: 68
Joined: Sat Feb 25, 2012 11:15 am

I read in City AM on friday that some crazy broker (I forget the name) has decided to give out a "buy" rating for betfair, claiming that the new sportsbook will lead to a change in the business and has a set a target price of 1100p :lol:
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Looks like California has killed exchange betting for at least another year: -

http://www.drf.com/news/toc-tables-exch ... -next-year
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Just catching up on some stuff and noticed a very unusual buy order was put through right at the close lifting the price from 750p to close at 786p due to a buy order for 185,863 shares which is around £1.5m

Someone know something about the upcoming results?
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

FY12 Results Announcement

http://corporate.betfair.com/media/pres ... -2012.aspx

29/06/2012

‘A year of building momentum leaves us well placed for future growth’

Betfair (LSE:BET), the world’s biggest betting community and one of the world’s leading online betting and gaming operators, today announces its audited results for the 12 months ended 30 April 2012.

Financial highlights
Core Betfair3 revenue growth of 10% in H2 results in full year revenue up 6% to £349.5 million
Core Betfair adjusted EBITDA up 15% to £92.1 million
Core Betfair adjusted EBITDA margin up 2.1ppts to 26.4%
Group underlying earnings per share up 21% to 41.1 pence per share 2
Final dividend up 19% to 7.0 pence per share to give a full year dividend of 10.2 pence per share
Completed £50 million share buyback in the year

Operational highlights
Good exchange performance: Non-risk sports revenue up 11% in FY12
Mobile driving growth: 44 million bets (up 122%) and £22.7 million of revenue (up 97%)
Technology re-architecture and data centre consolidation completed allowing focus on new products
Next generation sports products launched, including ‘fixed odds’ bets, which will drive future growth
Strong current trading: Core Betfair revenue up 18% in the last 8 weeks

Commenting on the results, Stephen Morana, Betfair’s Interim Chief Executive Officer, said:

“We have delivered double-digit net gaming revenue growth in Core Betfair in each of the last three quarters and a healthy increase in profits. We have also started to deliver on our strategic objectives, including the launch of important new products that will drive future growth.

“Our unique Betting Exchange has continued to be the main driver of growth this year, with contributions from all major sports. Betfair has achieved many new highs, with records set in most of the major sporting events including the Champions League final, Cheltenham festival, Wimbledon, US Masters and Indian Premier League. The Exchange has continued to deliver market leading odds and this has been the focus of our marketing message in recent months.

“Mobile betting has been a key feature of the year for the industry and our substantial investment in the channel has given us a clear product advantage. The increasing penetration of smartphones and the convenience of the channel for customers have led to strong growth in mobile usage and revenues. In April alone, customers placed over 6 million mobile bets and almost 50% of UK & Ireland actives used the channel. We are making further enhancements to our mobile exchange betting product and have recently broadened our offering to include sports multiples and casino games on mobile.

“We have now completed the major re-architecture of our technology platform, which allows the introduction of new customer facing products and has enabled substantial improvements to our website. Most recently, we have commenced the rollout of our next generation sports products, which integrate our risk product with the Exchange to create a one-stop shop for sports betting.

“FY13 has started well, with Core Betfair revenue up 18% in the first 8 weeks against the prior year, driven by the European Championships and a return to historical margin levels in risk products, as well as the continued success of our value led marketing campaign and further mobile growth. New products and the opening up of new geographies leave us well placed for future growth. I am pleased to have had the opportunity to lead the business in this interim period and would like to thank all employees for their support. We look forward to Breon joining us on 1 August.”

1.Excluding exceptional items and equity settled share-based payments
2.Underlying figures are stated after making a number of adjustments in order to aid comparability between periods. These adjustments involve the exclusion, where relevant, of: the revenue and EBITDA from the High rollers segment; exceptional items; equity settled share-based payments; profit on sale of financial asset; net foreign exchange gain; and the associated tax effect of these adjustments.
3.Core Betfair excludes Betfair US, LMAX and Betfair Australia
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

Apparently 200,000 people were net winners over the course of the year.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I've stuck up a summary of the key presentation points on twitter.
switesh
Posts: 527
Joined: Mon Jul 11, 2011 8:43 am

Euler wrote:Apparently 200,000 people were net winners over the course of the year.
200,000 out of how many (total active accounts)? I'm looking to find out the success ratio. Blindly I believe it should be 1% or less, closer to 0.5% should be my guess.

Any ideas where I might be able to obtain these figures from?
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

They said is was 23%, but that seems remarkably high. I've been trying to work out in my head if that is a realistic number or not. I mean if all active accounts had a bet, half would end up and half would end down. On the next bet that may reverse but more would be at a net loss thanks to Betfair's commission. I guess a lot depends on how active the 'actives' are.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

Euler wrote:They said is was 23%, but that seems remarkably high. I've been trying to work out in my head if that is a realistic number or not. I mean if all active accounts had a bet, half would end up and half would end down. On the next bet that may reverse but more would be at a net loss thanks to Betfair's commission. I guess a lot depends on how active the 'actives' are.
23% means that there were 870,000 active accounts however that means there has been a massive increase in active accounts. Earlier in the year they said the number of active accounts was falling so something isn't right.

Sounds like creative accounting to me, as they say statistics can back up almost anything.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I agree, it all depends on your definition. I'm sure I asked them what the definition of an active was at some point.
andyfuller
Posts: 4619
Joined: Wed Mar 25, 2009 12:23 pm

I found this surprising that was announced this morning, much higher than I would have thought:
Betfair wrote:In FY12, Core Betfair generated approximately 4% of revenue from Cyprus and this revenue made a contribution of approximately £9 million before allocation of central costs.
Betfair kicked out of Cyprus:

http://otp.investis.com/clients/uk/betf ... sid=256151
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I made a similar comment via the blog. I was very surprised to see those numbers as Cyprus is such a small country.
User avatar
Euler
Posts: 24700
Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

UK Director To Leave Betfair

Betfair, the iconic betting exchange and sports betting group, is undergoing several important changes under its new Chief Executive, Breon Corcoran.

This weekend, the group's director for sports exchange, poker and casino in the United Kingdom, Peter Marcus, confirmed that he was involved in talks that would eventually see him depart the group after 14 months.

Marcus was recruited from rival group, William Hill to head the UK operations, which account for over half of Betfair's revenues.

While Betfair would not comment on the news that the Betfair UK Director is to leave, it is believed that he will be on his way out within the next few days.

Betfair Culling Translators

Peter Marcus' departure is just part of a larger move to cull the number of employees at Betfair as the group moves closer to its core product and reducing its expansion around the globe.

It was recently revealed that over 50 translators would be asked to leave the group, with Betfair citing that it would be reducing the number of languages it made available on foreign websites in eastern Europe, Nordic countries and Asia. Instead, Betfair intends to concentrate on countries that are "more strategically attractive."

"We are concentrating on some countries more than others," said Betfair.

The group would not disclose which countries it was reducing its translation services in, and said it was not pulling out of these markets altogether. However, Betfair did confirm that it would not try to recruit new customers in these countries, and would reduce marketing costs.

Analysts, Morgan Stanley noted: "We think new management is making ongoing changes to the geographic profile of the business."

Betfair, which was founded in 1999, employees over 2,000 people around the world, mostly technology staff.
User avatar
superfrank
Posts: 2762
Joined: Fri Aug 14, 2009 8:28 pm

2,000 is a helluva lot of people.

looks like cost-cutting is the only real option for increasing profitability and it probably makes sense.

imho they should concentrate on growing the exchange side of the business - there are hundreds of fixed odds/casino/games/poker operators and the margins for that stuff will only get slimmer as competition increases.
Post Reply

Return to “Trading Financial markets”