Betfair set float price

[Tobedotty]

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

[Euler]

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

http://www.drf.com/news/toc-tables-exch ... -next-year

[andyfuller]

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?

[Euler]

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

[Euler]

Analyst presentation

http://corporate.betfair.com/~/media/Fi ... tation.pdf

Vital Statistics

http://corporate.betfair.com/~/media/Fi ... istics.pdf

[Euler]

Apparently 200,000 people were net winners over the course of the year.

[Euler]

I've stuck up a summary of the key presentation points on twitter.

[switesh]

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?

[Euler]

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]

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.