Betfair sees profit rise after cutting IT development costs

Betfair has reported a 61 percent increase in pre-tax profits to £61.1 million, helped by reductions in its technology spend.

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Betfair has reported a 61 percent increase in pre-tax profits to £61.1 million, helped by reductions in its technology spend.

In its preliminary results for the year ended 30 April, the online betting firm said it spent £60.1 million on technology, five percent less than the previous year (£63 million).

Betfair said that it “capitalised” £7.4 million of internal development costs this year, compared with £17.3 million in FY2013. Capitalised costs are those that are spread over a longer period of time.

“Technology costs before capitalisation of internal development expenditure were down 16 percent on the prior year following headcount reductions, a shift of development activity to Romania and Portugal and savings from external suppliers,” the company added.

According to the results, Betfair employed 1,739 staff in 2014, compared with 2,066 in 2013. This was slightly higher than the headcount figure reported by the company in December (1,681).

Mobile

Mobile proved to be an increasingly significant channel for Betfair. In the fourth quarter of 2014, revenues from mobile represented 64 percent of Betfair’s fixed-odds Sportsbook revenue in the quarter. This had risen from 57 percent in December. On average, mobile delivered 56 percent of all Sportsbook revenues in the year.

“Mobile is an extremely important channel, with around 52 percent of active Exchange customers placing a bet via mobile in the year,” Betfair said.

“We have also continued to improve our products for our high end Exchange customers, with a number of improvements to our Application Programming Interface (API), which allows customers to bet directly into our Exchange without using our own website or mobile channels, launched over the year.”

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