€253m boost for Betfair shareholders as earnings rise

Online gambling company, Betfair plans a cash return of £200 million (€253m) to shareholders and higher dividend payouts after posting a 51% rise in first-half earnings.

The firm, which operates an exchange that allows gamblers to bet against each other, said yesterday it made core earnings (EBITDA) of £73.9m in the first six months to the end of October on revenues up 26% to £237.6m. The revenue growth was driven by strong customer base growth, the World Cup and favourable sports results.

Betfair, which ended the period with £271.4m of cash, increased its interim dividend by 50% to 9p per share and raised its medium-term dividend payout target to approximately 50% of earnings. It upped its forecast of core profit in the 2014-2015 year to £97m-£103m to reflect the first half performance and “the momentum we take into the second half”.