With Cash Reserves Approaching Millions Of Dollars, Company Describes Pretax Profits As Up By 65 Percent

Betfair, which can only be described as a juggernaut of a betting exchange, the online company, is continuing to drive its way toward ever larger returns for its investors for the year ending April 2006.  This is according to the financial figures that were recently released.

Revenue growth reported for the company for year on year is up 36 percent to GBP 145 million.  This includes a pretax profit increasing by 65 percent to GBP 38 million.  The increase is from GBP 23 million, at which it stood during the previous year at the same time last year.

At the end of the year the cash balance for Betfair was in excess of GBP 142 million.  This is more than double the amount stated in its last report for this time last year.  For the same period as reported a year ago, the company had achieved GBP 52 million in cash balance.  For the group, the net asset value increased from GBP 48 million, which was what it was in 2005, to GBP 139 at this time.

During the last reporting, 1.3 billion bets were made at Betfair and its sights. Now, Betfair web sites are regularly receiving over 5 million bets each day, with as much as to GBP 2000 per minute being spent at the site.

By this time last year the number of players on the exchange who are active was 95,000, and it is now up to almost 160,000.  By the end of this year’s football World Cup, the number of registered customers had reached almost one million.  The World Cup alone generated 11 million bets at company web sites.  Those gamblers who are active with the company web sites spend on the average per month, one hour and 10 minutes.  This is an impressive amount of time in deed.

The Betfair exchange now operates in 18 languages.  In addition to the gambling web sites owned and operated by the company, Betfair has been experiencing very encouraging results with its many ventures in the emerging markets in areas outside the UK, and these ventures now account for over a third of the total revenue that the company earns.  This is compared with the ventures representing less than a quarter of total revenue in 2005.  In addition, half of the new accounts be set up have been set up by people living outside the UK.

The company report again states that Betfair has never accepted bets from gamblers living in United States and clearly has made this known to the United States authorities.  It also indicates that it approves of the fact that the UK tax set up regime will continue unchanged with regard to betting exchanges and web sites.

At the international level, Betfair is now is a very large group.  Betfair employs 900 employees in its two offices in London as well as its other offices situated in Malta, and in Denmark, and more recently now in Australia.

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