Betfair revenue rises

 
City A.M. Reporter
Betfair Group, the world's largest betting exchange, said it was confident of delivering full year results within the range of market expectations after third quarter revenue rose 6.2 per cent.

The group, founded ten years ago by one-time professional gambler Andrew Black and former JP Morgan derivatives trader Ed Wray, also said that its betting exchange would operate under a Gibraltar licence with effect from 9 March.

Betfair said it had made a good start to the fourth quarter after reporting revenue of £77m in the three months to the end of January.

"We are rolling out a planned series of major improvements to our sports betting product which will help drive revenue growth in Q4 and into 2012," chief executive David Yu said in a statement.s.

Betfair said its 73.5 percent-owned LMax exchange platform for online financial retail trading remained at an early stage of development and will update on its progress at the time of its full year results in June.

Shares in Betfair were sold at 1,300 pence in an IPO last October and hit a high of 1,610 pence that month but their value has slumped on the back of fears over increased regulation of the betting industry. The shares closed on Monday at 887.5 pence, valuing the business at 954 million pounds.

Betfair is not a traditional bookmaker but instead acts as an intermediary between gamblers wanting to place a bet or offer odds to others, taking a commission on their winnings.

Britain's two biggest traditional bookmakers, Ladbrokes and William Hill, both reported increased profits last month benefiting from strong performances from their online businesses.