Betfair boss Corcoran to announce efficiency plans for betting exchange11th December 2012 / lee
New boss of online betting exchange BetFair Breon Corcoran is ready to make some big cost cutting moves with the business. Since taking over, the first set of financial results are in and in his first presentation, Corcoran is expected to take some measures to start saving Betfair some money. The Irishman, upon joining the betting exchange back in the summer in a move from Irish betting site Paddy Power, made an immediate impact in taking Betfair out of the complicated Greek and German markets because of fallings-out with gambling authorities in the countries.
With analysts expecting drops in half-year profits because of a busy summer of sports, during which the London 2012 Olympics took weak trading and affected early betting of the new Premier League season because it overlapped the big kick off, money saving measures are needed by Betfair. The cost cutting measures could include some job losses because of the drop in wagers being placed over the summer.
There were some positives for online betting exchange Betfair during the summer, notably the interest in Andy Murray’s run to his first Grand Slam title at the US Open this year. That single event alone saw more money placed on any event in any sport in the history of Betfair. But it wasn’t enough to stop the profits of Betfair falling over the half year period and Mr Corcoran is expected to announce pre-tax profit of £42 million, which is down substantially from £45.6 million during the same period back in 2011.
Betfair latest financial announcements will be interesting news to the London Stock exchange, where the company is trading at 750p after entering the market back in 2010 at a share price of 1,300p. The withdrawal from the Greek market is expected to cost Betfair a loss of around £13 million pitfall on their profits alone. Betfair, because they are an exchange where punters themselves bet against each other, the actual amount of money wagered is an import indicator to judge their financial performance.