Betfair, a reputed gaming enterprise, has recently published its financial results, which reveal that Betfair Poker has witnessed a fall in its poker revenue ever since it joined the Ongame network.
The online gaming company has witnessed a fall in its poker as well as horse racing revenues during the past six months from May 2010 to October 2010; and although the company has not revealed the exact figures, it has released an official statement regarding the revenue decline.
According to this statement, Betfair’s games growth has become better, but its poker gaming service has shown significant declines year by year ever since it changed over to Ongame network. Betfair intends to work on its offerings and address various poker challenges by enhancing its poker products and presenting initiatives.
Although the company’s poker and horse racing revenues have fallen, it has grown by 27 percent, raking in profits of $213.3 million in areas of sports, football, and skill games; however, the company has not met its overall growth target because of its poker and horse racing revenue decline.
The Betfair shares declined by 14 percent on December 20, 2010 after the company announced its financial results. To make matters worse, race meetings have been cancelled owing to bad weather, which will cause a further decline in revenues. Betfair has blamed its poker revenue decline on Online gaming, a new online gaming software platform it had changed to recently. The company blamed its horse racing revenue decline on low average bets placed by punters owing to the economic recession and a poor racing season.
According to Daniel Steward & Co, the brokers, Betfair revealed excellent financial results during the first half of the fiscal year, but the company will have to put in a lot of effort to deal with the rising market demands. The company showed a 12 percent rise to £189 million and 48 percent earnings per share rise to 9.2p; and the company’s balance sheet shows net cash worth £178 million.
Analyst Michael Campbell says that he approves of Betfair’s unique P2P business model, but that Betfair will have to double its earnings per share of 9.2p, which it showed during the first half of the financial year, in order to meet the expectations of 28p earnings per share at the end of this financial year. He also remarked that these expectations might be difficult to meet owing to increasing costs.

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