Betfair saw a rise in share price after unveiling minimal financial information that showed strong Q2 performance, following on from all things World Cup.
Betfair have taken the opportunity to release a few grains of Q2 financial information ahead of a meeting of investors and analysts, to discuss product development and technological capability issues, and it’s good news.
After reporting a Q1 revenue increase of 30% (year-on-year) to £117.3m the pressure was on. That huge dollop of cash was made available largely due to the World Cup; an event that took £15.9m in total revenue – double that of Euro 2012.
Could the Betfair team maintain momentum?
It seems they could; continued positive activity in the active customer base – with a 30% increase throughout Q2, coupled with a huge slice of luck in the sports results market – means revenue rose 22% to £119m. Take away those irregular sporting results, and revenue would have increased by 13%.
The punters footballing curse is the bookmakers joy, as unusual results in the English Premier League, and Euro 2016 qualification, has led to a rise in profits.
Southampton, West Ham and Swansea are amongst the less fancied teams riding high in the Premierships, at the expense of bigger teams and a whole host of international teams have endured a nightmare start to their Euro 2016 qualifying campaign, with the World Champions Germany heading a list that contains Holland and Spain.
Shares immediately rose 2.98 per cent to £12.46 after the news was released.
“It’s been another strong quarter that has underpinned our confidence in delivering our expectations for the year,” said Breon Corcoran, Betfair’s CEO, “One of Betfair’s key advantages is its product differentiation and this results from having leading in-house technology capability. Cash Out and Price Rush are examples of how Betfair has developed products that are changing the way our customers bet. Today we are hosting an event to explain how we approach new product development and operate a platform that processes over ten million transactions each day.”