Betfair, the betting exchange company with a substantial presence and market share in Ireland, has announced a 39% increase in the sports betting revenue from their sports book operation for the three month period ending 31 January 2013.
Revenue was up to £7.5m for the three month period that ended 31 January 2013, from £5.4m in the previous quarter.
This was not enough though to deflect a fall in total group revenue of 4%. This figure takes into account casino, exchange and the poorly performing poker offerings that Betfair delivers to customers around the world.
Overall, exchange revenue dropped to £56.3 million from £59.7 million a year earlier, impacted largely by regulatory changes in Greece, Germany, Cyprus and Spain. Developments in these markets has created problems for Betfair over licenses and tax rates and the company has now decided to focus more on countries where gambling regulations are less ambiguous.
Looking ahead, Betfair said it felt confident of reaching anticipated group revenues of £370m to £385m and profits of between £65m and £70m for the full-year.
“The new leadership team is in place and has started to implement the changes required to make Betfair a more focused and leaner organization,” explained the Q3 interim management statement.
The fall in revenue will be tough on CEO Breon Corcoran, who departed Paddy Power in Dublin during 2012 to take over the reigns of Betfair.
The company’s rival in the betting exchange arena, the once Irish owned Betdaq, was bought by Ladbrokes in January, a move which sparked a significant share price revival at the company.
William Hill announced during their latest results that their target was to become a £5 Billion valued company within the next five years.
In 2010, Betfair shares floated at £13 but over the past 52 weeks have ranged between 641.51p and 905p.
Such volume of betting and overall growth of the market has produced windfalls for sport through sponsorship and other commercial deals though in the series we will run next week on the EU Conference on Sport, we will highlight a number of major concerns over the benefits versus the threats of sport closely associating with the betting industry.