Betfair announces notable financial results for 2015
18 June 2015
Since the inception of Betfair in June 2000, this company has exponentially expanded as the largest betting company in the United Kingdom and the largest betting exchange in the world. This continued success and year-on-year growth is due to the diverse mobile platforms and its robust marketing activities.
Gross total revenue totalling a £476.5million pounds or $745.1million dollars has significantly increased by 21% in the preliminary financial year for 2015 results. Earnings before interest, tax, depreciation and amortisation were up 32% on a year-on-year basis to £120.2million pounds, with operating profit margins rising by a strong 53% to £94.3million pounds. Remarkable earnings per share increased by 75% in the past year, up from 49.0p to 85.9p, and dividend per share rising to 70% from 20p in 2014 to 34p in the last 12 months.
New customer acquisitions have increased by 65% following increased marketing investment across all gaming offerings including Live Roulette, Live Blackjack and Poker. Although Betfair has a strong sports betting infrastrure, the marketing efforts to now incorporate online casino gaming offering has shown promising results. There has been a greater emphasis placed on improvement of gaming products and acquiring new and innovative mobile applications to enhance player experience across all services.
Chief executive officer of Betfair, Breon Corcoran commenting saying: “We are successfully executing our strategy and achieving profitable scale in sustainable markets. Our investments are working, the business now operates at pace and our people have a strong will to win. Product is a key reason why customers join and stay with Betfair. Important product improvements, including the extension of Price Rush to each way bets and Cash Out to in-running horseracing, helped to drive a strong performance during these key racing festivals. We continue to invest heavily in the business. This year we spent £28 million pounds more on marketing and customer bonuses and added more than 60 people to our product development teams. Our ‘Tap Tap Boom’ advertising campaign has been effective in showing the simplicity of using Betfair, especially through our market-leading mobile apps. We are sustaining our marketing investment throughout the upcoming season, including leading slots on Sky Sports and BT Sport’s football coverage. Betfair is well positioned for further growth and we look forward to building on these results in financial year of 2016.”