LeTiss 4pm wrote:That didn't sound like a conference call BF would want everyone to hear
How do you mean LeTiss?
I thought it was yet again very striking how little they talked about the exchange. It also sounds that it could become ever harder to see what is happening in the exchange if they start to report just sports rather than breaking it into sports book and exchange. The demise of the exchange could be hidden further.
The 1% growth in revenue on the exchange from £56.3m to £56.7 is somewhat worrying. In real terms that is a fall and it would seem that that has come from margin as opposed to growing the exchange business.
When you consider over 59% of total revenue is coming from the exchange (62.2% in Q3FY13) v 9.96% from the sports book (8.27% in Q3FY13) it is amazing how everything seems to be about pushing the sports book. The advertising seems as though it is all pretty much sports book and the whole company ethos from the top seems to be sports book.
The future doesn't look bright for an expanding exchange, though by the sounds of it they don't see any impact from the Ladbrokes exchange. The exchange market would seem rife for someone to come along and get back to basics with it.
Finally the Normalised P/E ratio at 54.98 seems crazily high to me. I would be interested to hear anyone's views on this.
