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Betfair Mobile shows stellar growth

Mobile shows stellar growth
Online gambling firm Betfair reported on its H1/2014 interim results for the six months ending October 31, 2013 saying progress has continued to be made against its strategic objectives with the company delivering a good first half performance.
Betfair reported a 25 percent increase in sportsbook-led active customers in its UK and Ireland markets while its Exchange / Sportsbook combination is showing signs of early success with 38 percent of sports betting customers using both products during the period and 32 percent of new UK and Ireland Exchange customers initially having joined via the Sportsbook.
Mobile revenues were up 70 percent in H1/2014 and now account for more than half of its Sportsbook revenues.
Other key performance indicators include:
-     Underlying EBITDA up 16 percent to GBP 48.9 million and underlying EBITDA margin up 5ppts to 26 percent
-     Underlying free cash flow up 52 percent to GBP 23.5 million
-     Interim Dividend up 50 percent to 6.0 pence per share
-     Expecting full year underlying EBITDA of between GBP 82 million and GBP 87 million in FY14, including combined start-up losses of between GBP 5 million and GBP 10 million in Italy and New Jersey.
-     Sustainable revenues up 11 percent in Q2 and now represent 77 percent (H1/FY13: 71 percent) of total revenues
-     Overall revenue declined 6 percent in H1, reflecting the recently lapped FY13 market exits
The company expects to rollout its automated integration of Exchange and Sportsbook in Q4 as well as continued investment in international opportunities.
Breon Corcoran, Betfair’s Chief Executive Officer, commenting on the results said:  "Following cost reductions in the past twelve months we now operate as a leaner and fitter business, which means we can reinvest to generate revenue growth. Our sales and marketing budget is over GBP 100 million this year. This enables a top tier presence on Sky Sports, major investment in our online marketing capability and an exciting new partnership with Channel 4 Racing for 2014.
"We are also investing in international opportunities. Our online casino launched in New Jersey on 21st November and, while regulatory processes are always uncertain, we have made good progress towards launching an Exchange in Italy."

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