Betfair Revenue Rises 6.2% To $125 Million In Q3 2010

U.K. online betting company Betfair has just announced its third quarter results ending January 31st showing a 6.2% increase in its revenue to £77 million ($125m) compared to a year earlier.
Leading the way was an 8.6% increase in revenue for the company’s sports betting operation, while Betfair’s Games revenue had also increased by an impressive 8.2%. However, the company’s Poker business continued to slide and fell 20% to £5.2 million for the quarter.
Nonetheless, CEO David Yu seemed pleased with the overall figures and commenting on the financial results said:
“We are pleased with the growth we achieved in the third quarter, especially from football and Games. Marketing efficiency continued its improving trend, resulting in a lower cost per acquisition again this quarter whilst also showing strong growth in active customer numbers.”
Another positive for Betfair investors is that the world’s biggest betting exchange has now said its business would now operate under a Gibraltar license starting March 9th.
The move was made in response to what has been seen as unfair UK tax regulations, with Betfair now hoping to profit to the tune of £20 million each year. Commenting on the decision to move Betfair offshore to Gibraltar, CEO David Yu said:
“When you look at how the UK does their taxation, it’s based on all revenues rather than where the customer is located. For example, if you’re paying tax to a local jurisdiction it doesn’t really work to have a case where you’re double taxed both in the UK as well as the other jurisdiction.”
However, Betfair has indicated it will still maintain 1,200 employees at its London HQ and would continue to be incorporated in Britain.
Following the Q3 financial result Betfair shares have risen almost 6%% to 940p in early trading.