Betfair U.S. Enjoys 25% Spike in Revenue
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Behind a strong quarter that saw 17% revenue growth (constant currency) at its New Jersey online casino, compared with the same quarter a year ago, Betfair reports a 25% revenue growth in its U.S. operations for the three months that ended Jan. 31.
The advance-deposit wagering outlet TVG, which is part of Betfair U.S. operations, purchased the racing channel HRTV during the quarter and entered into a long-term content rights agreement with the Stronach Group, which operates Santa Anita Park, Gulfstream Park, Pimlico Race Course, Laurel Park, Golden Gate Fields, and Portland Meadows.
Betfair chief executive officer Breon Corcoran said the purchase and rights agreement adds opportunities for TVG.
"This strengthens TVG's ability to drive incremental volume on its advanced deposit wagering platform and is expected to lead to additional advertising and distribution opportunities," Corcoran said in a release.
Corcoran said in a March 5 conference call with investors and analysts that for the first three quarters of the fiscal year (through Jan. 31), TVG has enjoyed a 22% growth in handle, compared with the same nine months a year ago, and is building market share. According to Betfair numbers, TVG is the market leader among U.S.-based ADWs by handle at 37%, followed by Churchill Downs Inc.'s TwinSpires.com at 36%, and Stronach Group's XpressBet.com at 20%.
Corcoran said TVG is the first U.S. ADW with a wagering app and TVG's mobile platform is up 85% during the first three quarters.
"That's helping our business; it's helping us differentiate," Corcoran said during the conference call.
Parent company Betfair reported a fourth consecutive quarter of double-digit percentage growth in revenue. For the third quarter of its fiscal year, revenue was up 20% to £114.6m compared with the same quarter last year. Behind some of that revenue growth is a 68% revenue spike in the mobile channel for the Betfair betting exchange.
The company said the revenue growth led to a 17% increase in EBITDA to £23.6m.