Betfair sees rise in profit driven by strong US and UK market

The FTSE 250 company released its interim results for the six months to 31 October on Wednesday.

The group’s revenue was up 15% to £274.4m despite being compared to a FIFA World Cup year, and was driven by 93% growth in Sportsbook volumes.

It said mobile remained the key growth driver across all the company’s products, with it now representing 76% of Sportsbook revenues.

That led the company to post a 12% increase in operating profit to £67.2m, and up its interim dividend from 9p to 15p per share.

The company also noted its merger with Paddy Power is on track to be completed in the first quarter of 2016.

It said all regulatory filings have been submitted and shareholder documentation is due to be published on 27 November.

Chief executive Breon Corcoran said the company’s strategy of focusing investment in markets with good regulatory visibility continues to pay off.

“Betfair's relatively low exposure to unregulated jurisdictions meant that even though revenue decline in these markets accelerated, primarily due to the impact of suspending operations in Portugal, it was more than offset by growth in sustainable markets.”

He said the UK and the US were the two markets that accounted for most of the company’s growth.