Betfair chief reveals B2B expansion plans
Breon Corcoran says company will explore B2B platform partnerships and will remain "flexible" over potential acquisitions
Betfair is looking to explore B2B partnerships in smaller markets following the model it recently entered into with Crown Resorts in Australia, according to chief executive Breon Corcoran.
Betfair sold its 50% stake in Betfair Australasia in August to joint-venture partner Crown Resorts in August, but maintained a B2B presence in the country by supplying its betting exchange platform to the casino operator.
And in a briefing with journalists this morning after posting a 51% surge in H1 profits, Corcoran said Betfair could strike similar deals in additional, smaller markets that the company would not normally choose to enter.
“We can enter these smaller markets with a local partner and provide them with access to the exchange platform and its liquidity,” Corcoran said, adding that under the arrangements marketing and operational activities would be left to the partner.
Corcoran has previously hinted at utilising Betfair’s technology platforms on a B2B basis and in October the operator began recruiting for a commercial manager specifically for B2B projects.
The chief executive also revealed that the operator remained “flexible” with regards to potential M&A activity after admitting it hadn’t “found the right deal” in the market as of yet.
Betfair is to hand back approximately £200m in cash to shareholders as part of efforts to manage its capital more efficiently, but Corcoran said this would not impact the company’s ability to raise funds should an opportunity to make a strategic acquisition appear.
Corcoran said it could look to either accelerate or de-risk internal markets or address product gaps with a purchase but also admitted that scale would be “critically important” for the company in a post-Point of Consumption tax environment.
Betfair’s chief executive was speaking after the firm reported record profits for the six months ended October 2014 and he said its product investment as being central to the operator’s recent revenue growth.
Corcoran recently outlined intentions to increase its technology spend to £37m in FY2015, up 17% on its 2014 figure with a 20% increase in product and technology staff.