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LMAX loses £13.2m in first year
15/08/2011
Tom Victor
Betfair’s majority owned financial trading product LMAX recorded pre-tax losses of £13.2m for the year ended 30 April, Betfair’s annual report has shown.
The platform only launched in October last year, offering trading in a variety of areas including market indices and commodities.
Goldman Sachs holds 12.5% stake in the parent company of the financial betting exchange, which was set up by Betfair as long ago as 2007. However, LMAX suffered an early setback with the resignation of chief executive Robin Osmond in April, the former Morgan Stanley head of global investment banking who was replaced by David Mercer after leaving in order to “pursue other opportunities in the City”.
Chief operating officer Martyn Holman also left the platform soon afterwards, according to eFinancialNews.com, and he has recently been followed out the exit door by head of legal and compliance Dario Crispini.
June saw Betfair bring in Ian Chuter as group operations director and Michael Bischoff as director of information services, although the betting exchange is still looking for a new CEO after David Yu announced his intention to step down.
The London-listed company, which floated last October, recently released its first full-year results since its IPO, with group revenues up 8.1% year-on-year. Profits after tax were also up by 54.4% to £35.1m despite the impact of the LMAX losses. However, since the IPO, it has seen more than half of its share price wiped out and is now valued at £650m.
15/08/2011
Tom Victor
Betfair’s majority owned financial trading product LMAX recorded pre-tax losses of £13.2m for the year ended 30 April, Betfair’s annual report has shown.
The platform only launched in October last year, offering trading in a variety of areas including market indices and commodities.
Goldman Sachs holds 12.5% stake in the parent company of the financial betting exchange, which was set up by Betfair as long ago as 2007. However, LMAX suffered an early setback with the resignation of chief executive Robin Osmond in April, the former Morgan Stanley head of global investment banking who was replaced by David Mercer after leaving in order to “pursue other opportunities in the City”.
Chief operating officer Martyn Holman also left the platform soon afterwards, according to eFinancialNews.com, and he has recently been followed out the exit door by head of legal and compliance Dario Crispini.
June saw Betfair bring in Ian Chuter as group operations director and Michael Bischoff as director of information services, although the betting exchange is still looking for a new CEO after David Yu announced his intention to step down.
The London-listed company, which floated last October, recently released its first full-year results since its IPO, with group revenues up 8.1% year-on-year. Profits after tax were also up by 54.4% to £35.1m despite the impact of the LMAX losses. However, since the IPO, it has seen more than half of its share price wiped out and is now valued at £650m.
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so many good thing betfair can do. lmax is not one of them.
why would you use LMAX as you watching betfair Kill their true betting exchange....can't say you're a true exchange (we nothing like IG index) but at the same time, try and kill off every winning punter on your betting exchange
Lori
With a catchy name like LMAX how did it fail?
They missed the key that EVERYONE is using:
iLMAX
With a catchy name like LMAX how did it fail?
They missed the key that EVERYONE is using:
iLMAX
what is lmax? is hard to work out what it is. is it an exchange? or is it like spreadex?
Its an ill conceived variation on the sporting exchange, the fact is watching market movements is as exciting as watching paint dry, ok if you have 10 mill on a company then its exciting but isn't that what the exchange already does and also the idea of a sporting exchange was borrowed from the
stock market , to try to reverse engineer it for punters on stocks is so much like a spinned idea
and as i mentioned before it cant propagate, get your/our money out of lmax betfair.
stock market , to try to reverse engineer it for punters on stocks is so much like a spinned idea
and as i mentioned before it cant propagate, get your/our money out of lmax betfair.
Snail racing has more potential as a new market than company valuations, come on number 6
I hope they don't bin the idea, the LMAX forum on here is one of the funniest sections
Almost as good as the Taikai forum. What a truly splendid concept Taikai was
£13m a year is a small price to pay to maintain a platform for alun2005's excellent contributions
Almost as good as the Taikai forum. What a truly splendid concept Taikai was
£13m a year is a small price to pay to maintain a platform for alun2005's excellent contributions
LMAX could work....just not with betfair managers running it
you could have a good point there nairda, I wonder if they have sorted there management problems out?
I truly believe Taikai could work as well, if done slightly differently!
I liked Taikai, was a decent idea and a good laugh. Version 2 was bad though, and that cooked its goose.
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