Betfair Posts Another Record Year Of Results
World's leading online betting company sees revenues double in three years; active customers up 150% in same period
Highlights for year to 30 April 2009:
- Strong revenue growth of 27% over the last 12 months; revenues have doubled in 3 years following a plan to expand internationally and into new products
- Strong profit and cash generation leaves Betfair with £133m in cash and no debt
- Core betting exchange continues to deliver a sustainable competitive advantage
- Adjusted ebitda of £72m, up 29% from 2008, despite significant investment
- Acquisition of TVG Network gives Betfair a market-leading position in legal US online wagering
- International customers now account for 49% of total revenues (2008: 44%)
- Continued investment in technology enables on average 6.4m transactions to be matched every day
Betfair enjoyed another year of strong growth. Group revenues rose by 27% to £303m as Betfair reaped the benefit of a three-year plan of investment in its product range and international operations.
A full calendar of sporting events and the confidence customers have in the security of Betfair's ringfenced funds attracted record numbers of users to the Company's site. The number of active users increased to 652,000, an increase of 25% on the previous year. Betfair now holds £240m of customer monies on deposit in ringfenced accounts.
The Group performed well across all its operations
Revenue from its sports business grew by 20%, making Betfair the biggest online sports operator in Europe. The Company also saw 31% revenue growth in its games division, driven by the launch of Arcade and other new products. Much of Betfair's growth has come from customers outside the UK, who contributed 49% of total revenues last year, up from 44% in 2008. In Australia, the lifting of an advertising ban led to a 40% growth in revenue.
In the US, Betfair's $50m acquisition of TVG Network, the largest legal wagering business in America, positions the company to take advantage of any legislative change. The company now holds licences in the UK, Italy, Malta, Germany, Austria, the US and Australia, and continues to work with governments worldwide to push for a regulated approach to the further liberalisation of gambling markets.
David Yu, Chief Executive Officer of Betfair, said:
"This has been a phenomenally successful year for Betfair. We have stayed on the path of sustainable long-term growth, even in recession. Our relentless focus on value for the customer, our substantial investments in technology and the importance we place on regulatory affairs means that the business is well positioned for a leading role globally. We will continue to push into international markets and to innovate with popular new products, and I look forward to another exciting year ahead."
Stephen Morana, Chief Financial officer, said:
"We are delighted that our three-year investment plan has been so successful. In that period, the business has doubled in size. We believe our strong balance sheet, with no debt, makes us very well positioned to take advantage of further opportunities as they arise, in particular our US venture and planning towards World Cup 2010."
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