Today, the online gambling company Betfair announced its results for the third quarter of the fiscal year and reported double-digit increase in both its earnings before interest, taxes, depreciation and amortization (EBITDA) and its net revenues over the period, which ended on January 31st.
The Chief Executive Officer of the company – Mr. Breon Corcoran – commented on Betfair’s performance. He shared that the three months in question were “another strong quarter”.
The strong growth of 17% and 20% respectively, is considered a result of the fact that the company’s sports and gaming divisions posted strong growth in the quarter.
According to Betfair’s statement, its EBITDA over the third financial quarter rose from £20.2 million in the same quarter a year earlier, to £23.6 million. The company explained that a 51% increase in its profits would be posted, if the UK Point of Consumption tax had not hurt them.
The core earnings of Betfair over the three months ended on January 31st rose by 17% and reached £23.6 million. In comparison, analysts have projected a total of £17.4 million in the period.
Betfair also revealed that its net revenues for the quarter soared from £95.5 million that were reported in the prior-year period and reached £114.6 million. The growth represents fourth straight quarter of double-digit revenue increase.
The revenue generated from the largest markets of Betfair – UK, Ireland, Denmark, Italy, Spain, Malta, Bulgaria and the USA – increased by 27% and reached £92.3 million. In comparison, the sustainable market’s revenue of the company amounted to £73.2 million in the same period a year earlier.
The revenue of the rest of the company’s markets was reported to have declined by 2% year on year in correspondence with Betfair’s strategy to become more focused on making larger investments in regulated jurisdictions.
In addition to the third-quarter report posted by Betfair, the online gambling company also boosted its full-year profit projection. The results reported in the third three months of the fiscal year are considered better than initially expected and became the reason for strong trading that increased the price of the company’s shares.
Betfair explained its boosted annual profit forecast with the strong third-quarter performance and the “continuing momentum”, which are expected to bring an increase in the company’s full-year earnings. According to Betfair’s statement, the EBITDA expected by the company on a yearly basis will be in the range from £113 million to £118 million.
