SBC News Breon Corcoran - sustainability key to Betfair’s future performance

Breon Corcoran – sustainability key to Betfair’s future performance

Following the positive results published in its opening Q1 2015 results, Betfair Chief Executive Breon Corcoran outlined that the operator would focus on product refinement and operational sustainability in order to continue Betfair’s improved financial performance.

The operator report increased net gaming revenues of 30% to £117.3 million (Q1 2014: £90.4 million). Betfair further reported that all gaming verticals had witnessed growth during the Q1 2015 period (three months ending 31 July).

Speaking during an analysts call following Thursdays 2015 Q1 results disclosure, Corcoran pointed that the improvements made by Betfair in recent months would help the company navigate the upcoming Point of Consumption (POC) tax and that the operator was well positioned to contend future industry concerns and issues.

The continuation of revenue growth is the best way to offset the increased cost of that tax”, Corcoran stated.

Corcoran claimed that tax implementations may cost the operator up to £17 million in revenues, however  Corcoran stated that Betfair’s management team was prepared to handle the potential blow and refinement of  its services.

Betfair had seen an aggressive marketing drive in Q1 2015, with the launch of new advertising campaigns targeting the 2014 World Cup. Customer acquisition during the three months ended 31 July was up 181% year-on-year and active user figures for the period increased 48% to 784,000.

Corcoran dismissed that the operator would aggressively spend again on marketing, instead Betfair would aim to refine its player retention strategy, by looking to decrease player churn and improve customer life time values throughout all product verticals.

Betfair would also look to release new products and player services in the coming months to improve retention. Corcoran pointed to the positive impact made by Betfair’s Price Rush product, which enabled the operator to offer premium market value during the period.

With regards to new market entry Corcoran, added that Betfair management would research each  markets potential and capabilities for the operator to compete.

On potential entry into the German market Corcoran stated “We’re still deciding what to do. We’re delighted to get a licence but we’re still thinking through all the possible opportunities,”

On his appointment as CEO of Betfair Corcoran had undertaken a review of all Betfairs operational markets, with the operator changing its focus to markets deemed sustainable, Corcoran is keen to progress further with this strategy for Betfair.

“We should remind shareholders that there is still some 20% of our revenues from markets where there is a less certain outcome,“We’ve highlighted before that Russia and Portugal are on the larger end of that group, but they’re both less than 3% of group revenues each”

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