Exchange betting specialists Betfair had a rude awakening this morning with the news that brokers have cut their rating from ‘buy’ to ‘hold’. Peel Hunt analyst Nick Batram is worried a turnaround in the company’s fortunes will take a lot longer than expected and slashed the target price from 824p to 747p. Batram added: “We continue to believe that the upside potential is substantial and a greater focus on the core business and key markets should ultimately return the business to growth. However, the turnaround will take time and there appears to be no short-term catalyst to drive outperformance.” Betfair’s shares currently sit at a 52-week low of 681.50p and it’s not a million miles away from their all time low of 567p in Aug. 2011.
You feel that 2013 is going to be a pivotal year for the company’s attempts to get out of the rut it currently finds itself in. Only weeks ago they identified various parts of the business that need some work and chief amongst these was reinvigorating the business by focusing on regulated jurisdictions. The situation regarding Betfair’s exchange product is one that, as part of the core business, will have to be clarified in some of their largest markets and it’s here the “make or break” is likely to happen.
Four of the UK’s largest bookmakers have extended an agreement that sees them partner the country’s number one horseracing network. Racing UK has signed the “partnership” with Coral, Ladbrokes, Sky Bet and William Hill and the bookies will get “significant exposure all various Racing UK platforms”. These include the channel itself as well as online, digital, print and promotional activities. Racing UK is now home to almost all the big courses in the country and recently picked the contract to cover Ascot Racecourse from mid-2014 after 10 years on rival channel At The Races.
German-facing sports betting firm mybet has signed a sponsorship deal with German club Eintracht Braunschweig. The deal, signed last month, is similar to one they already have Fortuna Dusseldorf and Greuther Fürth. Mybet commented that the “emerging club fits perfectly into their sponsorship strategy”.