Poll results: Betfair set for continued growth
eGR readers say operator's success story will continue into 2016 but remain divided as to the scale of growth
Betfair’s growth story looks set to continue into FY16 however the operator may find it difficult to reproduce the levels of success witnessed over the past 12 months, the majority of respondents to this week’s eGaming Review poll have said.
According to 80% of eGR readers, the London-listed operator is well-placed to build upon its impressive FY15 results, however the scale of improvement against tough comparatives remains up for debate.
Betfair’s recent full-year results saw the firm record a 21% year-on-year increase in revenues for the 12 months ended 30 April 2015 while profits also soared 32% year-on-year with EBITDA coming in at £120.2m.
The rise in profits came despite taking a £19.2m hit from the introduction of the UK Point of Consumption taxation regime, and 29% of poll respondents are confident the firm can maintain its current trajectory.
And while more than half of readers (51%) also believe Betfair will grow during FY16, they suggested growth will likely be at a more moderate rate than that recorded over the previous 12 months.
However, a number of City analysts have advised caution over Betfair’s short-term prospects and questioned the firm’s ability to maintain recent performance levels, with Panmure Gordon lowering its recommendation from Buy to Hold.
And a minority of respondents (20%) concurred with that view, claiming the demands of PoC, increased competition and a lack of major summer sporting events will significantly impact Betfair’s performance.