Betfair reports big profit rise but revenues disappoint

It added that it saw a big rise in gambling on football matches, which increased by 24%.

lol,

cos thats where the pc churners go.

And nothing on all that non sports market stuff bf has spent a fortune on.

A blackhole as I predicted.

"Its pre-tax profit for the 12 months to 30 April totalled £26.6m, up 50% from £17.8m a year earlier. Its revenues rose 8% to £368.6m."

so, um, what crisis is the latest hike solving exactly?

average profit per account is down

The headlines for me are

1. BF's profit still way short of B365's on-line traditional bookmaking model

2. Horseracing revenue showed slight fall yr on yr and is now exceeded by football revenue

3. BF's claim to use PC funds to boost new punters not reflected in fall of commercial & marketing spend of £8m = share of rev down from 28.5% to 24%

4. Cash flow almost entirely spent on capital developments

5. Charging winners more established as key principle

6. BF claim that "core customers remain very loyal" which is one way of reading the situation re. monopoly

Still do not come across as a "betting" company - want to be seen as a "tech" company

Inflated figures due to world cup so next years figures will be more telling imo....

"A huge amount has been achieved during the period, and I'm delighted that we have more customers than ever resulting in a record number of bets placed and that we've reported record revenue and profitability.

"Despite these successes, revenue growth... could have been stronger but we have delivered a significant improvement in margin resulting in profitability for the year above expectations."


again, where is the crisis exactly?

Inflated figures from pc churning, which is a one off boost to revenue.

Time to take my bf winnings and short the stock.

well, yeah - but the pc's been here for 3 years and was never intended as temporary, so inflated profit from PC churning has to be seen as permanent too. the "one-off boost" would have come after year one.

The key change was to lifetime winnings in late 2009 and it would take some time for peeps to figure out and implement strategies.

The latest financial year began April 2010. So I standby its a one time boost from pc churning.

Its onetime in the sense the %age revenue increase won't be repeated in subsequent years.

Arpu down across the board with poker particularly poor. Arpu from sports down every year since 2008.

Actually arpu from everything sports,gsmes,poker down every year since 2008. doesnt give records for before then