Betfair, online gambling firm, recently made an announcement that it had managed to significantly upscale its profits and revenues during the last fiscal year (21 percent). The total earnings amounted to GBP 476.5 million.
The EBITDA of the company in the fiscal year amounted to GBP 120.2 million. This showed a major 53 percent jump from the previous year figure (for the same time period). But the sum does not take into consideration the latest UK online tax on gambling.
The fundamental open cash flow of the company has also increased by 47 percent. This indicates GBP 103.8 million. The active customers served by the company during this time period also increased by 52 percent. This means a total .7 million players were registered with the company.
Betfair also reported success of its latest marketing investment plan resulting in greater customer acquisition. After this performance, the board of the company has asked for a 70 percent increase in dividends to be paid to the company shareholders for this particular period. This will mean payment of 34 pence/share.
Betfair recovers well after initial losses
A few years back, Betfair ceased all its operations associated with unsupervised online gambling. At that time, the business faced severe criticism by those who believed that this decision would be highly unfavourable for the firm.
There is no doubt that in the beginning, this move led to instant losses for the company-25% fall in revenue and major decline in share value. But, if you look back now, the decision actually appears to be a sensible one. One can see that the firm is back in the game and is stronger than ever before.
According to Breon Corcoran, Betfair CEO, the financial year 2015 has been great for Betfair. The strategy is being successfully executed and the company is achieving profitable balance in the sustainable markets.