London-headquartered gambling operator Betfair Group plc announced its financial results for the first half of the 2016 fiscal year. The gaming company reported increases in all its key performance indicators.
Revenue amounted to £274.4 million during the six months ended October 31, 2015, up 15% year-on-year as compared to the £237.6 million posted for the same period a year ago. The operator said that the growth was mainly driven by its sportsbook operations as volumes were up 93% in the first half of the fiscal year. It also pointed out that an increase was reported, despite the tough comparative period featuring the 2014 FIFA World Cup.
EBITDA grew 9% in the six months ended October 31, 2015 to reach £80.5 million. In comparison, the amount of £73.9 million was posted for the same period a year ago. Betfair pointed out that an increase was reported, even though it had to pay the additional amount of £26.8 million in Point of Consumption tax.
Operating profit for the period amounted to £67.2 million, up 12% from the £59.9 million posted for the same six months of the 2015 fiscal year.
Commenting on its performance during the second quarter of this financial year, the gambling operator said that revenue increased 16%, including a 25% growth in sustainable markets. Betfair further noted that the number of active customers in sustainable markets was up 31% year-on-year. Sustainable revenue mix stood at 88% during the quarter ended October 31, 2015 compared to 82% in the same three months of 2014.
The gaming company said that growth was mainly driven by its mobile division. Revenue from mobile accounted for 76% of overall sportsbook revenue for the second quarter of the fiscal year.
As for revenue from Betfair’s US operations, it increased 35% in the three months ended October 31, 2015. The significant growth was attributed both to an increase in casino revenue and the successful integration of HRTV.
Commenting on the company’s financial performance, Betfair CEO Breon Corcoran said that the posted results are well ahead of their initial expectations and are indicative of the operator’s “continued strong momentum.”
Betfair also announced earlier today that all the necessary regulatory filings regarding its proposed merger with rival operator Paddy Power have been submitted. The deal is subject to regulatory and shareholder approval and is expected to be closed in the first quarter of 2016.
