Betfair switches financial platform

By December, Betfair will complete its switch-over to its financial trading company, Tradefair, which is a GFT Markets platform. Betfair gave notice to London Capital Group (LCG), it’s long-time provider of its intension to sever the relationship, effective December 12. The contract contributed £600,000 to LCG’s gross profit of £11 million, during the first half of 2013.

Since Tradefair’s launch, in the fall of 2007, LCG has provided its trading platform and support. Other white-label igaming sites, such as Ladbrokes and William Hill, don’t operate with an independent spread betting platform, Betfair maintains a separate brand domain at Tradefair.com.

Last week, the betting exchanged announced a 13% drop in first-quarter revenues, noting that the Euro 2012 football competition affected the previous year’s results. Although revenues were down, earnings had increased by an impressive 16%. Increased revenues were attributed to cost saving measures and a reducing marketing costs, because there wasn’t a summer football tournament.

Boss, Breon Corcoran, since he was headhunted by Paddy Power to take the reins at Betfair last year has reduced its workforce by 500, to around 2500. Revenues dropped, gaming in particular fell 31%, and the gaming industry was hit by the withdrawal of marketing acquisition spends from a majority of unregulated dot.com markets. Furthermore, regulatory shifts caused the forced exits of Greece, Germany, Cyprus and Spain. However, the quality of revenues coming from sustainable markets continued to improve, up 4% from the previous year.

Betfair management is confident it can meet this year’s expectations, as laid out by its board of directors. Corcoran noted that the start of the soccer season showed encouraging gains, boosted by the company’s biggest ever investment in a television advertising campaign. The number of active United Kingdom customers increased by 26%. In fact, sustainable markets drove revenue growth into the double-digits.

Davy Stockbrokers analyst, David Jennings, commented that Betfair’s first quarter release, showing an increase of several data points, was encouraging. In addition, Nick Batram, an analyst working for Peel Hunt, said that this meaner and leaner Betfair has shown encouraging results and appears to be on the road to success.

September 11, 2013 by : posted in News No Comments

Leave a Reply