Betfair full year results in a nutshell
To save you from reading the entire report and listening to the hour long presentation here is a summary:-
Revenue up 2% to £393m, profit before tax up 61% to £61m
Sportsbook has grown as has customer acquisition to the sports book. Exchange is revenue is down. In the future guidance will not be given on the individual aspects so we will lose any insight as to how the exchange is performing vs. the sportsbook.
US business is performing well and ‘sustainable’ revenues are up with non sustainable revenues down. +£26m vs down £20m I noticed Australia was missing from the sustainable revenues list!?!? Later questioning on Australia didn’t really bring many answers. Similar answers to the last presentation. They played down the change in Victoria racings charges.
[EDIT : Betfair have been in touch to confirm that Australia isn’t included in the sustainable revenues list because it is part owned, but probably would meet their definition of sustainable revenues]
Costs have been cut which has boosted profitability. Earnings are bound to be higher now as they are working off a lower cost base. Cost cutting and write off’s have ensured this is the case. Dividend up 54%
No KPI’s are given any longer so we will have to guess what they are but. UK+IRE actives were up 35%, but on what and on what scale is a mystery. Revenue is only up 8% so that may tell a story.
There you go, a quick summary.
Category: Betfair
