Online gambling company Betfair has cited an emphasis on sustainable revenues and product and marketing investments as the main reasons behind record revenue and profit in the 12 months to April 30, 2014.
In its preliminary results for the full year, the firm reported group revenue of £393.6 million (€451 million/$610.2 million), an increase of 2% on the £387 million achieved in the previous year.
Earnings before interest, tax, depreciation and amortisation jumped 78% to £91.1 million while profit after tax also grew from a loss of £49.4 million in 2013 to a positive of £61.1 million.
Betfair highlighted its mobile business in particular, with mobile revenue for the year up 70%. In the fourth quarter, mobile revenue represented 64% of sportsbook revenue.
Total sportsbook revenue for the full-year was up 50% to £36.2 million, but revenue for the firm’s sports exchange was down 1% to £244.3 million due to the absence of a major international football tournament.
Betfair also recorded a drop in gaming revenue, which fell 13% to £66.2 million, a decrease that the firm put down to the continued decline of poker and the adverse impact on other markets following its decision to focus on sustainable revenues.
Betfair chief executive officer Breon Corcoran said: “Our strategy is working. The emphasis on sustainable revenues and our product and marketing investments are paying off, resulting in record revenues and profits.
“The focus in FY14 was on creating a competitive sportsbook and we are now entering an exciting phase of product development to leverage both our exchange and sportsbook to stand out in a crowded marketplace.
“Our strong trading has continued into the new financial year and we look forward to building on this positive momentum during the World Cup that kicks off tomorrow and which will be an excellent showcase for our market leading products.”
source : www.igamingbusiness.com
