Betfair has reduced its technology costs by cutting jobs and offshoring development work.
It has also cut its spend on internal development by 76 percent (£7.8 million) year-on-year.
In its H1 2014 results, the betting firm reported that its technology costs were reduced by a fifth compared with the same period last year, before capitalisation of development costs. Capitalised costs are those that are spread over a longer period of time.
“Technology costs before capitalisation of internal development expenditure were down 21 percent on the prior year following headcount reductions, a shift of development activity to Romania and Portugal and savings from external suppliers,” Betfair said.
“In H1 FY14, £2.5 million of internal development expenditure was capitalised compared with £10.3 million in H1 FY13. Technology costs after this capitalisation were broadly in line with the prior year.”
Under administrative expenses, the firm put its technology costs at £27.9 million for H1 2014, compared with £28 million in H1 2013.
While it did not provide a breakdown of the job cuts, the company said that headcount across the business was 1,681, a fall of 516 (23 percent) from 2,197 in H1 2013. The redundancies were made during the second half of 2013.
Meanwhile, Betfair said that its mobile channel was still performing well despite a six percent fall in overall revenues from £200 million to £188 million.
Mobile revenue for the business was up 70 percent in the first half of 2014, and now represents 57 percent of Betfair’s fixed-odds Sportsbook revenue.
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