Betfair reports 26% jump in first-half revenue
Strong customer base growth and successful gaming cross-sell helped Betfair deliver a 26% jump in half-year revenue, the online betting and gaming operator announced on Thursday.
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The group said the strong results have prompted it to announce a £200m return of capital to shareholders and an increase in its targeted dividend payout ratio to approximately 50% of earnings.
The interim dividend was increased 50% to 9p per share.
FTSE 250-listed Betfair said turnover rose from £188.0m to £237.6m, driving underlying pre-tax profit 87% higher to £60.9m.
The strong performance also led the group to increase its expectations for full-year earnings before interst, tax, depreciation and amortisation (EBITDA) to between £97m and £103m, after seeing a 51% rise to £73.9m in the first half.
Divisionally, gaming revenue rose 44% thanks to higher customers and successful cross-selling, Sports revenue was up 24%, driven in part by World Cup revenue of £15.9m, while Betfair US saw a 17% rise, mainly driven by TVG.
Chief executive Breon Corcoran said: "These results demonstrate strong delivery against our strategy for achieving sustainable growth that we outlined two years ago. We have substantially strengthened our competitive position by investing in products that differentiate Betfair and by enhancing our marketing capabilities in a crowded market place.
"The performance in the first six months of the year, coupled with the momentum we take into the second half, means we now expect EBITDA for the full year to be between £97m and £103m."
The group anticipates further exits from regions where the future of online gaming regulation is unclear.
"We continue to monitor developments in certain Eastern European territories and significant uncertainty remains in Portugal as the country introduces new legislation," it said.