Betfair announced H1 2014 results this morning that showed mixed top line trading across divisions but enhanced profitability owing to management successfully taking costs out of the business. Revenue for the period amounted to £188 million (-6%) while EBITDA totalled £48.9 million (+16%). The Board of Directors increased the dividend per share to 6.0p from 4.0p (+50%). Cash levels increased during the six month period to £171 .3 million (H1 2012: £117.9 million). <p>
Examining Betfair’s revenue by business segment, there was a mixed performance across divisions. Exchange revenue declined by 7%, sports was higher by 39% reflecting a new platform while gaming saw a decline of 25%. Revenue in the US increased by 19%. In a similar experience to its peers, Betfair is benefitting from a transition to mobile technology with revenue for that platform increasing by 70% in H1 and now makes up over 50% of the Sportsbook revenue stream. <p>
In terms of outlook, management are now guiding for FY 2014 EBITDA to be in a range of between £82 million and £87 million which is below the current consensus forecast of £89.7 million.
<p><h5>David Holohan</h5>
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