Betfair set float price

[Iron]

It's a great opportunity for anyone who's had problems with Betfair to get their own back and make a quick buck by shorting them!

Jeff

I thought the Aus issues would have had an impact but it doesn't seem to have had much.

I think in the wider context, there will be lots of holders who will have waited to cash in. If they see the price falling them may be tempted to sell. There will probably be quite a stock overhang on this one for a while unless real buying pressure is in the market.

[Euler]

Betfair 1H results: -

http://www.investegate.co.uk/Article.as ... 700098801X

City didn't like them and the shares are now under £10.

'Highlights'

· Underlying revenue up 12.3% to £188.5m (H1 FY10: £168.0m) 1

· Underlying Adjusted EBITDA up 24.0% to £31.2m (H1 FY10: £25.1m) 1

· Underlying profit after tax up 49.8% to £14.4m (H1 FY10: £9.6m) 1

· Reported profit after tax down 12.7% to £6.8m (H1 FY10: £7.8m) after net exceptional costs of £14.7m primarily associated with the Company's listing

· Cash position at 31 October 2010 of £178.2m with no debt (31 October 2009: £136.5m)

· Customer funds held on deposit in separate ring fenced accounts at 31 October 2010 of £288.0m (31 October 2009: £259.1m)

Core Betfair

Core Betfair includes Betfair's unique Betting Exchange and its portfolio of other sports betting, games and poker products.


· Active customers up 31.1% to 654,000 (H1 FY10: 499,000)

· Revenue growth of 11.3% to £167.2m (H1 FY10: £150.1m)

· Strong revenue growth of 22.3% in Q1 driven by World Cup, followed by growth of 1.6% in Q2

· 25.7% growth in Adjusted EBITDA to £35.5m (H1 FY10: £28.2m) 2

· Adjusted EBITDA margin of 21.2% (H1 FY10: 18.8%) 2

Caveats

1 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; and the associated tax effect of these adjustments. A reconciliation of reported figures to underlying figures is set out in Appendix 2

2 Excluding exceptional items and equity settled share-based payments

[Iron]

What's the difference between underlying profit and reported profit?

Jeff

· Underlying profit after tax up 49.8% to £14.4m (H1 FY10: £9.6m) 1

· Reported profit after tax down 12.7% to £6.8m

[Euler]

What's the difference between underlying profit and reported profit?

Reported profit is real and 'underlying' profit is before items that are considered exceptional or sometimes EBITDA. But of course a lot of exceptions and ITDA are 'real' costs in the long run.

[PeterLe]

Read an article in the evening standard tonight..About the share price...
i think it said that the price traded at 10.40 (?) today...whereas the target price is a good 3 or 4 pounds higher...Apt comment from David Yu who said ..markets have a way of finding the correct price!
i was wondering if it would be worth a punt at this price..at least you could gain entrance to the annual shareholders meeting if you held stock???

[Euler]

Well they are better value than they were but they are still not cheap.

Few insider purchases today, so they obviously think there is value in there.

[PeterLe]

Well they are better value than they were but they are still not cheap.

Few insider purchases today, so they obviously think there is value in there.

At what price would you consider them to be good value..and how many would you need to be able to attend the shareholders annual meeting?
Thanks
Peter

[Euler]

A lot lower than the current price, but that's because I am used to buying value stocks. Betfair is valued as a hot technology stock and that makes it incredibly hard to value accurately as all the potential is in the growth which hasn't happened yet and is uncertain. I can't accurately make a judgement so I will pass on it as a true investment. From an investment perspective Betfair is a bit of a punt in my books.

You only need one share to become a shareholder and gain access to the AGM. Though broker fees etc would make a bigger number a more economic purchase.

[LeTiss]

I wouldn't recommend BF shares to anyone

IMO they're a company in decline

[andyfuller]

Decent falls this afternoon - down 3.25% and now sitting at just 907p

[LeTiss]

Decent falls this afternoon - down 3.25% and now sitting at just 907p

I think people have simply cottoned on Andy

BF are not growing outside of the UK in the way they had hoped.

It appears the company's growth is at the expense of their current customer base with a range of account charges. This will not continue forever!

I wouldn't be surprised if BF have actually folded in 10 years from now

[andyfuller]

Decent falls this afternoon - down 3.25% and now sitting at just 907p

I wouldn't be surprised if BF have actually folded in 10 years from now

They can't go on charging us more and more for the same thing - will have to end at some point.

See you at the job centre

[oddstrader]

Decent falls this afternoon - down 3.25% and now sitting at just 907p

I wouldn't be surprised if BF have actually folded in 10 years from now

They can't go on charging us more and more for the same thing - will have to end at some point.

See you at the job centre

The most frustrating point about all this for me is that Betdaq seem to have just given up,happy with their lot! and thats it,
could you imagine if betfair actually became customer focused and promoted people like us with loyalty incentives and proper support ..... Betdaq would be a distant memory !

[PeterLe]

Any other company would treat their best customers as key accounts and have regular account management and reviews...betfair seem to treat their best customers with excessive charges such as the PC charge.

If there were a viable alternative I and many others would simply switch in the same way you switch electricity suppliers for instance...the problem is, betfair have almost a monopoly...and I cant see it changing anytime soon??

[Dobbin]

Hi there

Unfortunately you are correct but we are also part of the problem

If we all ceased providing Betfair with liquidity for a month they would have to change.

We moan about it but are not pro-active about it.

Change will not come about if WE sustain the Staus Quo.

We are part of a Society that expects somebody else to change things whilst we just keep doing the same things in the same way.

If everyone switched to Betdaq there would be no problem with Liquidity would there


Just my thoughts