Racing grew in `12 ?

[3virgul14]

BF claims the following ;

Racing revenue grew by 11%
Racing performed well in the year, with revenue up 11%. The National
Hunt season was particularly strong and included our best ever
Cheltenham Festival. All products contributed to this growth, with the
most significant contribution coming from the Exchange. Our continued
investment in content, including the Paul Nicholls, Donald McCain and
Ryan Moore columns, helped to drive activity on the Exchange and the
“Don’t Settle for Less” campaign reminded punters of Betfair’s market
leading odds. In the UK, the mild winter led to a low number of
abandonments in FY12 (49 meetings versus 88 in FY11), although
this was offset by a planned reduction in the number of fixtures.
Irish Racing (up 11%) and other International Racing (up 16%) also saw
strong growth. Racing Multiples benefited from the introduction of
each-way betting and Tote revenues were helped by increased levels
of interest in Jackpot and Placepot bets.

What was your experience guys? Can you tell ?

[hgodden]

I only ever do UK racing but I can't say I noticed too big a difference, positive or negative

[steven1976]

I guess you cant argue with the numbers. However, I think it would be interesting to know if its growth from new customers. Not sure I buy into the part about investment in content with the articles being a main reason but thats probably just cos im use to skipping it.

[herbie]

..and still their share price is down 20% over the last year... while willy hill up 63% and the Lad up 51%....

[steven1976]

I guess as for half of 2011, Premium Charge payers paid less than they did for the entire 2012, then it distorts the figures a little as well.

[superfrank]

anyone know if BF breaks down their exchange revenue by commission, pc, "other activities"?

odd that revenue has increased on racing when it feels like real volume is falling.

[Euler]

Yeah, all the major races last year seemed to decline from my viewpoint. Static at best.

[jimrobo]

Its going to increase relative to volume as more customers hit 20% and 60% premium charge barriers though. Volume can fall, but revenue can be up as a direct result of more customers paying more commision.

[Euler]

Yeah, I guess this is revenue, not matched bet turnover.

[steven1976]

After reading my post again, I was meant to write above, that in 2011 for 6 months the top premium payers will have paid 20% for 6 months of the year and 60% for 6 months (after new level was introduced). This would be compared to 2012 they will have paid 60% for 12 months.
I think BF are trying to dress things up for the share holders at the moment but the truth is they need to find a way to bring in a lot more new customers. I feel very little real money in the markets these days and not just for horses. They really need to have a shake up and change things in my opinion.

[superfrank]

They really need to have a shake up and change things in my opinion.

they decided several years ago that, rather than concentrate on increasing volume, they'd squeeze as much revenue from the exchange by whatever means, e.g. trader tax (pc), xm and other stuff.

they've probably made more money than they otherwise would have done in the short-term, but it's completely short-sighted imho. the reputation of the exchange has suffered (with customers and overseas regulators it seems) and i remain convinced that real volume has been falling for some time and will continue to do so.

[freddy]

That's exactly it, they can ramp up their profits for a few years no doubt,
but during that time they will have taken away every single reason why they were so unique and why people use them int he first place .

Where winners arn't welcome wasn't the slogan that gave them their place in the market.

[andyfuller]

BF claims the following ;

Racing revenue grew by 11%
Racing performed well in the year, with revenue up 11%. The National
Hunt season was particularly strong .....In the UK, the mild winter led to a low number of
abandonments in FY12 (49 meetings versus 88 in FY11), although
this was offset by a planned reduction in the number of fixtures.

Been away for a bit and just keeping my eye in on return and was reading this thread with interest.

As has been said BF have seemingly managed to massage the figures the last few years with the XM and PC etc but soon (next year?) we are going to be on a level comparison field where these extra revenue streams have been in place for the full previous 12 months so they can no longer artificially make things look better. When that time comes it will be interesting.

But one thing that stuck in my head was the quoted lines from Betfair. I haven't checked their figures but they say they lost 88 meetings in FY11 and 49 in FY12, the difference being offset by the reduction in fixtures. This is not the case as there was not that big a cut in the fixtures.

I am sure Peter or someone could check the actual figures but from my memory they have again tried to cover up better figures by making it look like they did better when in reality there was just more racing on which will naturally lead to more profits.