More Are Taking A Punt On Betfair Group Ltd Than Ever Before

Betfair Group Ltd (LON:BET) sees simpler Sportsbook product attract more new customers.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Betfair (LSE: BET) has revealed that a “simpler, more familiar product” is attracting more new customers now than in the company’s previous history, helping the bookmaker increase UK customer acquisition by 65%.

The Sportsbook offers ‘back-only’ fixed-odds betting, and exists as a standalone site to Betfair Exchange, in which punters can back, lay, trade, ask for a better price and Cash Out — the latter feature having been added to the Sportsbook’s functionality, providing a “differentiated customer experience”.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Promotions feature heavily in Betfair’s Sportsbook, too, emulating success seen most prominently in the industry at Paddy Power — and it’s no coincidence that CEO Breon Corcoran arrived from the Irish-based bookmaker in August last year.

Corcoran has overseen a year of transition since his arrival, with revenues lost due to changing regulation leading Betfair to replace them with “regulated, more sustainable revenues”. In today’s results, he went on to say:

“A new management team is leading the business, a wide ranging restructuring has been completed ahead of schedule [and] marketing investment has been focused on core markets.

“Although it remains early days for many of these initiatives, we remain pleased with the operational trends we are seeing, which give us confidence that the steps we are taking will deliver a higher quality, sustainable and growing business.”

 “We have made excellent progress on all of our key strategic aims and the business is in a far stronger position to generate future growth than it was at the start of the year.”

Elsewhere in the results, Betfair saw total revenue stay flat, ahead of previous guidance, although there was a 27% reduction in underlying pre-tax profit compared to the previous year, mainly due to development spend and regulatory impact. Free cash-flow generation remains strong, at £5o.2m compared to £43.8m in FY2012.

Shareholders will be pleased with a 27% increase in the full-year dividend, too, at 13p following the 9p proposal for the final dividend. At 840p, this gives a yield of around 1.6% — but it’s Betfair’s growth prospects that will attract investors, with today’s news doing no harm.

But if you’re looking for another company that should soar in price, we’ve pinpointed our favourite growth share and produced a special report in which we evaluate its finances, risks and growth prospects going forward. 

Simply click here to get your copy delivered to your inbox immediately — completely free.

> Sam does not own shares in Betfair.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Company Comment

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

Rolls-Royce shares are trading for pennies. Should I buy them today?

Just because Rolls-Royce shares cost pennies doesn't make them cheap. Its troubles aren't over yet.

Read more »

Business development to success and FTSE 100 250 350 growth concept.
Investing Articles

8.5% and 9.5% dividend yields! 2 FTSE 100 stocks to buy today

The dividend yields at these brilliant blue-chips sit very close to double digits. I think they could be too good…

Read more »

Investing Articles

Tesco vs Royal Mail: which cheap FTSE 100 share should I buy?

The Tesco and Royal Mail share prices both seem to offer great value at recent levels. So which cheap FTSE…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

2 FTSE 100 dividend-paying stocks to buy in an ISA

The deadline for new money going into Stocks and Shares ISAs is just around the corner. Here are two FTSE…

Read more »

Business man on stock market crash financial trade indicator background.
Investing Articles

2 dividend paying banking stocks to combat inflation in 2022

With inflation taking off in the US, the Fed may have to raise rates. Stephen Bhasera believes these banking stocks…

Read more »

Various denominations of notes in a pile
Investing Articles

A high-dividend stock I’d buy now

Why this high-dividend stock is potentially more than just a sleepy cash-cow business and growth looks set to kick in…

Read more »

Investing Articles

2 FTSE 100 dividend stocks I’d aim to never sell

I wouldn't try to hold all my investments forever, but these two FTSE 100 dividend stocks both have many qualities…

Read more »

Scene depicting the City of London, home of the FTSE 100
Investing Articles

With £2,000 to invest, I’d buy these FTSE 100 shares with big dividends

Several FTSE 100 shares pay out big dividends, but I'd start my research with these defensive operators in a growing…

Read more »