Online gambling company Betfair first-half revenue rises 15% to over €390m

Online gambling company Betfair has continued its impressive growth in its latest financial update released ahead of its proposed merger with Paddy Power.

Revenue for the six months to the end of October increased by 15% to £274.4m (€390.4m), despite the same period last year coinciding with a lucrative World Cup.

Betfair’s revenue wasn’t the only financial metric showing improvement during the period with earnings before interest, taxation, depreciation and amortisation climbing 9% to £80.5m; operating profit up 12% to £67.2m and earnings per share of 60.3p all on the up.

Analysts were suitably impressed by the results with those at Davy Stockbrokers predicting investors would be equally as enamoured with Betfair’s progress.

“Underlying profit margin expansion continued apace. Revenues were up 15% while operating costs were up just 6%.

"The group continued to win market share: sportsbook stakes nearly doubled year-on-year, while Betfair grew its sustainable market customer base by 21%.

“Profitability in the group’s US business more than doubled.

"While the H1 results contain few surprises, investors are unlikely to lose sight of the substantial progress that has been made,” Davy analyst David Jennings said.

The merger of Betfair and Paddy Power in a £6bn all-share deal is expected to be completed early next year.

The merger will see Paddy Power shareholders own 52% of Paddy Power Betfair, with Betfair shareholders owning the remaining 48%.