Betfair profits up 39% after strong World Cup
Operator records EBITDA of £34.5m after successful World Cup led to double-digit growth in both sports and gaming
Betfair has recorded a 39% year-on-year increase in Q1 FY15 EBITDA following a strong performance across all verticals during the World Cup and the success of its revamped mobile business.
EBITDA for the three months ended 31 July was £34.5m, up from £24.9m compared to the same period last year, while group revenue increased 30% year-on-year to a record £117.3m – excluding the World Cup, revenues grew 12%.
Betfair recorded World Cup revenues of £15.9m, almost double that of Euro 2012, while increased marketing investment, which included a new television advertising campaign, helped customer activations increase 181% year-on-year.
Revenues from the Malta-licensed operator’s sports betting business was up 30% to £83m while the company commented that favourable sports results boosted revenues by approximately £7m, although some of this was returned to customers in the form of free bets.
Mobile revenues increased 162% year-on-year after the recent overhaul of its mobile products, adding a single sign-on function across all apps, and the channel accounted for 70% of all sportsbook revenues.
The number of new active customers from sustainable markets increased 65% to 653,000, which the operator said had led to a strong cross-sell into its gaming products and saw gaming revenues rise 45% to £19.8m.
“Betfair’s ongoing product innovation and marketing investment led to an excellent quarter against all key metrics, with continued momentum in sustainable revenues and customer numbers enhanced by a strong World Cup,” Breon Corcoran, Betfair’s chief executive officer, said.
Last quarter Corcoran praised the company’s sustainable market strategy and in Q1 revenues from regulated jurisdictions increased 34% year-on-year from £69.9m in Q1 2014 to £93.7m in Q1 2015 “ 80% of total revenues.
Revenues from Betfair’s US business increased 14% year-on-year to £14.2m following the launch of its online casino in New Jersey in Q3 2014 and a new TVG wagering app on iOS.
“We are focused on a number of challenges, including our early stage investments in New Jersey online casino and Italy, and uncertainty remains in a number of unregulated markets,” Corcoran said.
“However, we are encouraged by the performance in the first quarter and the momentum of the business, and accordingly remain confident that we can deliver our expectations for the full year,” he added.