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Betfair set float price

Postby andyfuller » Thu Dec 08, 2011 3:19 pm

FY12 H1 Results out on Wednesday - will be interesting to see the yield of the new PC and a full year of horse racing cross matching.

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Postby Euler » Thu Dec 08, 2011 4:36 pm

Given the very aggressive nature of the way they have applied new charges you would expect a stellar set of figures. If that doesn't happen you have to ask yourself what is really going on in the business.

You sort of think that the figures should be good as that have put their hands in the accounts of many to boost the bottom line. But that's bound to have had a depressing effect on the general numbers and also it's likely that the charges have yield much less, due to the 'laffer' effect.

Should be interesting anyhow.

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Postby andyfuller » Thu Dec 08, 2011 7:38 pm

I would think the money they have 'earned' from Cross Matching on horse racing specifically will be massive, though isn't that run by a separate Betfair Company? So will those figures be published?

It will also be very interesting to hear what the plans are for Australia, the decision is due anytime now though it could take a few months yet. I was just reading Racing New South Wales have on ice roughly £110 million that they have collected to date in race fees, not all from Betfair but I bet they have paid a hell of a lot.

Surely if they lose then it would be game over for Betfair Australia?

http://www.racingandsports.com.au/racin ... ll_Unknown

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Postby Euler » Thu Dec 08, 2011 8:13 pm

I guess the xm will depend on how efficiently they have done it. There is a lot of slack that falls into Betfair's pockets on small fields but not on big fields. That said the racing markets are massive compared to others so any number on something huge will be big.

Its perfectly within their power to not skim anything off the XM so it's a bif naff that they continue to do so. I note they position it as 'improving' the markets but it's had the opposite affect when we measured it. It's a neat way of articifically keeping the overround smaller and therefore using that to qoute competitive prices in the market, before all the billions or other fees and charges of course!

A lot of 'Australian' market turnover doesn't actually go through the austrailian exchange I found out. I don't know how any ruling would affect that but I suspect Betfair route the traffic across the two exchange independantly for strategic reasons. I know wallets are seperate but when I saw the Aussie guys I was astonished to find out all the work I did in Aussie markets never ended up in their pot and they were not rewarded on it.

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Postby andyfuller » Thu Dec 08, 2011 9:41 pm

Euler wrote:A lot of 'Australian' market turnover doesn't actually go through the austrailian exchange I found out.


Can you expand on that Peter? I didn't know about that.

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Postby CaerMyrddin » Fri Dec 09, 2011 12:10 pm

I'm a bit worried with this Australian situation, right now australian markets are accounting for around 50% of my profits. How are traders down under seeing this court problem? Would you be put out of bussiness?

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Postby Euler » Mon Dec 12, 2011 2:23 pm

andyfuller wrote:Can you expand on that Peter? I didn't know about that.


I could have mis-interpreted what they said, but they quite clearly told me thanks for all the turnover you are doing but we don't get to see any benefit from it.

I don't know whether that means, they never see it on that the Austrailian exchange or whether it just means it's not included in their numbers or whatever. Difficult to tell.

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Postby Euler » Mon Dec 12, 2011 2:23 pm


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Postby andyfuller » Mon Dec 12, 2011 2:38 pm

Cheers for that Peter.

That is a bit odd about the Australian exchange. It sounds like the American exchange will have to be kept totally separate to the main exchange with no cross over between them so it won't be any use to people outside of the state.

Is anyone able to register for the webcast? I will make sure I have the kettle on and the custard creams ready ;)

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Postby Euler » Tue Dec 13, 2011 10:22 pm

Based on the fact the press release has already been written today and the share price rose, I'd predict a favourable response by the city when the announcement officially comes out tomorrow. ;)

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