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BETFAIR CEO'S DEPARTURE CONFIRMED
Tuesday June 28 , 2011 : Yu will not renew contract in October 2012
Reports over the weekend that Betfair chief exec David Yu is on the way out have been confirmed by the company.
The Reuters news agency reports that Yu has informed the Board that he believes it is the right time for the company to start looking for his successor. He does not intend to renew his current contract (which expires in October 2012) and therefore the Board will now begin a search process for a new CEO.
During the process of identifying his successor, Yu will remain fully committed to the company and to delivering the plans for future growth, Betfair said in a statement.
The publication Digital Look independently confirmed the report, saying that Yu wants to move on after six years at the helm.
The report notes that Yu took the company public in October 2010 but since then shares have fallen 52 percent on revenues of around GBP340 million. It also draws attention to the adverse news for the company that the proposed new tax regime in Germany will effectively prevent online betting exchanges operating from 2012.
Germany currently provides Betfair with 5 percent of its income.
Yu told the publication: "I have discussed my plans with the board and as a result, we are beginning the search for my successor. We are announcing this now so we can actively and transparently begin the process. I will remain committed to delivering the best for our people and our shareholders and will give the board all possible support during the succession process."
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