Betfair has blamed interest surrounding the Olympics for slower revenue growth in August.
Commenting in the group’s interim management statement, Betfair’s chief financial officer, Stephen Morana, said: “Like-for-like net gaming revenue, adjusting for the impact of regulation, was marginally higher in Q2 to date compared to the same period last year. A slower start to the football season and reduced interest in other sports during the Olympics resulted in slower revenue growth in August. After a strong Q1, this leaves year to date revenues in line with our expectations.”
Morana intends to step down from his role as CFO once a successor has been identified. “It’s been a very difficult decision to make but I feel the time is now right, for both me and the company, to move on.” He added that Betfair is entering into a new era under the leadership of Breon Corcoran who joined as CEO on August 1.
The group reported an increase of 13 per cent in core revenue to £91.6m. Revenue growth in the first quarter was primarily driven by Euro 2012, improved monetisation of exchange activity, continued mobile growth and a recovery in risk-sports margins. The resulting growth was partially offset by the impact of regulation.
The UK was the group’s strongest performing region with revenue up 23 per cent, which according to Morana was driven by the continued success of the Don’t Settle for Less advertising campaign and a great summer of sport.
He continued: “Mobile betting goes from strength to strength, reflecting increasing smartphone penetration, product enhancements and customer familiarity. Mobile usage and revenues doubled and half of all customers in the UK and Ireland placed a mobile bet in the first quarter. We have also continued to deliver important new product upgrades in recent months, including new Android and iPad apps that include our popular Cash Out functionality.”
Change in the regulatory environment in which Betfair operates has brought challenges in the form of product restrictions and higher levels of taxation, which has been recently illustrated in Spain, Cyprus and Germany.
