Betfair increases 2012/13 Interim Dividend by 25%

DividendMax Ltd.

Betfair increases 2012/13 Interim Dividend by 25%

Strategic highlights

Plan to reinvigorate the business announced, with three key elements:

- Focus on regulated jurisdictions to increase sustainability of revenues

- Invest in product and brand to enhance our competitive position and drive growth

- Introduce greater accountability and become a leaner and more dynamic business; c.£20 million of savings identified to date

Exiting from investments in LMAX and Kabam

Dividend policy reviewed: medium term payout target increased to 40% of Group profit after tax, reflecting confidence in long term outlook and increased capital discipline

Financial highlights

Changed approach to reporting:

- focus is on Group numbers rather than Core

- share based payments are included in underlying financials

- applying a more conservative approach to the capitalisation of future development costs

Group revenue from continuing operations up 5% to £200.6 million, driven by a strong sports and mobile performance 

Group underlying EBITDA from continuing operations down 2% to £42.3 million, as marketing investment offsets revenue growth

Group underlying earnings per share down 25% to 17.4 pence due to a higher depreciation and amortisation charge following increased capital expenditure in the prior year 

Interim dividend up 25% to 4.0 pence per share

Non-cash impairment of goodwill and other intangible assets of £80.6 million

Current underlying trading is in-line with expectations: revenue up 7% in Q3 to date after adjusting for regulatory impacts in Spain, Germany and Cyprus.

Companies mentioned