Betfair Stocks Jump After Sweet Q3 Earnings
According to a report from CalvinAyre.com, Betfair’s revenue was up 20% last quarter over the same time last year. Earnings on that revenue were up a whopping 17%.
Mobile wagering was one (of many) bright spots for the company with revenue of more than £24 million ($36.4 million USD).
Company officials are rightly proud of their mobile gains and say that Q3 marks the first time they’ve registered more revenue from mobile than from desktop wagering.
Revenue in the mobile sports betting sector grew by more than 96% and now encompasses four out of five Betfair punters.
All of this good news comes despite the UK’s much feared new Point of Consumption Tax (POTC), which went into effect in December.
The POTC assesses taxes on wagers placed in the UK with offshore operations. This is a major departure from previous taxation policies and was rightly feared by most UK-pointing bookmakers.
So far, the POTC doesn’t seem to have had too big an impact on Q3 earnings. Earlier this week we reported that Paddy Power, an Irish bookmaker with a large UK user base, reported record earning over the last quarter.
Whether or not UK bookmakers mobile push will be enough to outrun the POTC over the long haul remains to be seen but, for now, it doesn’t seem to be making too big a difference.