Betfair Group plc Q1 FY13 Interim Management Statement
Strong Q1 driven by a great summer of sport
Betfair today announces its Interim Management Statement together with key performance indicators for the three month period ended 31 July 2012 ("Q1 FY13").
Highlights
- Core Betfair revenue up 13% to £91.6 million (Q1 FY12: £80.8m)
- Growth led by Sports: revenue up 21%
- Strong UK performance: revenue up 23%
- Mobile betting growth continues: number of bets up 114% and revenue up 98%
- Breon Corcoran joined as CEO on 1 August
- Stephen Morana to step down as CFO once a successor has been identified
Stephen Morana, Betfair's Chief Financial Officer, commented:
"Revenue growth in the first quarter was primarily driven by Euro 2012, improved monetisation of exchange activity, continued mobile growth and a recovery in risk-sports margins. The resulting growth was partially offset by the impact of regulation.
"The UK, our largest market, was our strongest performing region, driven by the continued success of the "Don't Settle for Less" advertising campaign and a great summer of sport.
"Mobile betting goes from strength to strength, reflecting increasing smartphone penetration, product enhancements and customer familiarity. Mobile usage and revenues doubled and half of all customers in the UK and Ireland placed a mobile bet in the first quarter. We have also continued to deliver important new product upgrades in recent months, including new Android and iPad apps that include our popular Cash Out functionality.
"Change in the regulatory environment in which we operate has brought challenges in the form of product restrictions and higher levels of taxation. This has recently been illustrated in Spain and Cyprus, which have sought to restrict the products that operators can offer, and in Germany, where a turnover tax has been implemented that purports to cover all sports betting.
"Like-for-like net gaming revenue, adjusting for the impact of regulation, was marginally higher in Q2 to date compared to the same period last year. A slower start to the football season and reduced interest in other sports during the Olympics resulted in slower revenue growth in August. After a strong Q1, this leaves year to date revenues in line with our expectations.
"Finally, I have informed the Board that I intend to step down once a successor in the CFO role has been identified. It's been a very difficult decision to make but I feel the time is now right, for both me and the company, to move on. I have been incredibly fortunate to have been part of the Betfair success story over the past 10 years and am immensely proud of our achievements. Betfair is entering into a new era under the leadership of Breon Corcoran and I believe the company has a very bright future ahead of it."
