Betfair Profits High Despite New UK Tax Hit

Betfair Profits High Despite New UK Tax Hit

Revenue growth helped Betfair record an operating profit of £94.3 million, up 53 percent year-on-year, with profit for the year climbing 69 percent to £86.4 million. This, despite the introduction of a UK point of consumption tax which threatened to swallow up profit margins for online gambling companies. Betfair said it expects a similar tax regime to be established in Ireland by August, and will seek to obtain a license.Mulls B2B Solution

“The market remains highly competitive and, despite the introduction of the UK point of consumption tax, operators are still spending heavily on marketing and promotions,” said Corcoran.

“We continue to believe that scale is critical and we have opportunities to invest for profitable growth. We have momentum, current trading is good and we are confident we can deliver our expectations for the coming financial year.”

Corcoran also said that the company was mulling the idea of franchising out its betting exchange as a B2B offering. Betfair’s relationship with in Australia would serve as the prototype for such a venture, he said.

Last year, the company sold its 50 percent stake in Betfair Australia to Crown, but will continue to supply its product in return for revenue share. This would be the model for its B2B solution, Corcoran said.