Categories: iGaming

Betfair reports improved profits

Betfair have announced that their Q1 results will be higher than expected, giving executives at the betting exchange company more opportunity to fight off the CVC purchase.

The company said that they forecast underlying profit of around £73 million on revenues of £387 million for the year to end April, it announced on a trading update.
Estimates earlier were for £65-70 million profit and revenues in the range of £370-385 million.

Betfair also raised its cost cutting target, which was previously £20 million to £30 million

In the report there was no mention of the 880p-a-share bid approach from the private equity firm CVC, which the board last month rejected.

Betfair dismissed the approach as “highly conditional” and one that “fundamentally undervalues the company and its attractive prospects”.

CVC, best known for its ownership of Formula One, has until May 13 to table a formal bid although that deadline could be extended.

Breon Corcoran, the new chief executive parachuted in from Paddy Power last August, is due to give a strategy update presentation this morning.

Staff

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