Betfair set float price
When you read articles like this :-
http://uk.reuters.com/article/2013/06/2 ... 8020130627
It portrays Betfair as a company that is going places and corcoran as someone "who has a plan", whereas we on the ground; its regular customers know different.
I had to laugh, when i read this : "This strategy pursued by Chief Executive Breon Corcoran was an important factor in the rejection of a 950 pence per share bid from private equity firm CVC Capital Partners in May"....All they did was create a sports book which not only weakened their USP, but offered the customer in inferior product at the same time! To all intents and purposes, all the average gambler wants to do, is to put a bet on at the best odds and be able to collect their winning easily...the odds on the sportsbook are at lower odds
Corcoran will probably leave in a couple of years with a seven fig golden handshake having been seen to do a good job!
Its a crazy world
http://uk.reuters.com/article/2013/06/2 ... 8020130627
It portrays Betfair as a company that is going places and corcoran as someone "who has a plan", whereas we on the ground; its regular customers know different.
I had to laugh, when i read this : "This strategy pursued by Chief Executive Breon Corcoran was an important factor in the rejection of a 950 pence per share bid from private equity firm CVC Capital Partners in May"....All they did was create a sports book which not only weakened their USP, but offered the customer in inferior product at the same time! To all intents and purposes, all the average gambler wants to do, is to put a bet on at the best odds and be able to collect their winning easily...the odds on the sportsbook are at lower odds
Corcoran will probably leave in a couple of years with a seven fig golden handshake having been seen to do a good job!
Its a crazy world
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andyfuller
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Share price was down almost 9% this morning following Softbank's announcement they are selling 11 million shares in Betfair. Recovered to -4% at the moment.
Having bought in at £13.20 in April 2006 the price is now ~£8.40
Having bought in at £13.20 in April 2006 the price is now ~£8.40
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andyfuller
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Goldman Sachs have supposedly taken the 11% Softbank stake at £8.09 according to Mark Davies.
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andyfuller
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SoftBank had their rating downgraded to Junk so guessing it is linked to that:
http://www.reuters.com/article/2013/07/ ... 4A20130708
Re. Mark Davies it was on his Twitter Feed.
http://www.reuters.com/article/2013/07/ ... 4A20130708
Re. Mark Davies it was on his Twitter Feed.
Bert has sold a bunch more shares: -
http://www.investegate.co.uk/betfair-gr ... 811074089K
Obviously one major shareholder who doesn't think the new strategy is the correct one.
http://www.investegate.co.uk/betfair-gr ... 811074089K
Obviously one major shareholder who doesn't think the new strategy is the correct one.
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andyfuller
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That is a fair chunk of shares to have sold of late, roughly £20m worth. Bet he wishes the takeover went ahead.
As you say Pater not exactly resounding backing for the current strategy.
As you say Pater not exactly resounding backing for the current strategy.
Betfair management statement: -
http://www.investegate.co.uk/betfair-gr ... 00112695N/
Generally the tone was bullish despite reporting a decline in revenue. Revenue was down 13% year on year but underlying earnings were up. Betfair wrote off a lot of expenses in the last year and cut their workforce, so underlying earnings should be up on just that alone TBH.
Key data in the statement boils down to the following, paragraphs, notes in bold: -
Exchange revenue growth was affected by Euro 2012 falling in the prior year comparative period, as well as the withdrawal of the product from a number of markets in FY13. Adjusting for these factors, Exchange revenue was up 4%. (Elsewhere it is stated that Euro 2012 generated £7.8m in revenue which still leaves the exchange short?)
The volume of bets on our risk sports products doubled in the period, driven by the launch of the new Sportsbook. Despite lower gross win margins, Sports revenue from sustainable markets was up 52%. Lower international revenues, driven by market exits, meant that overall revenue was up 18%. (Sportsbook still appears to only a small part of the business and only grew £600k YOY)
Games revenues were down 31%, driven predominantly by significant declines in international markets as well as weak margins in risk products and a continued poor poker performance. (Gaming has plummeted £6m)
The number of active customers in sustainable markets was up 10% to 396,000, driven by the new Sportsbook. The number of actives in other markets was down 31% at 134,000. (Betfair no longer seem to publish KPI's, but in Q1 FY11 they reported total actives of 526,000 - Would be nice to see what the sportsbook numbers were vs the exchange)
I'm not sure what to make of this statement - "We have introduced Cash Out to our Sportsbook, enabling customers to lock in profits on singles and accumulators, bringing the first of many Exchange-based features to the product." Why am I confused? Because we all know now that the 'cash out' on the sportsbook has nothing to do with the exchange. So I'm not sure why you would try to position as such? Maybe I mis-read this? Comments welcome!
http://www.investegate.co.uk/betfair-gr ... 00112695N/
Generally the tone was bullish despite reporting a decline in revenue. Revenue was down 13% year on year but underlying earnings were up. Betfair wrote off a lot of expenses in the last year and cut their workforce, so underlying earnings should be up on just that alone TBH.
Key data in the statement boils down to the following, paragraphs, notes in bold: -
Exchange revenue growth was affected by Euro 2012 falling in the prior year comparative period, as well as the withdrawal of the product from a number of markets in FY13. Adjusting for these factors, Exchange revenue was up 4%. (Elsewhere it is stated that Euro 2012 generated £7.8m in revenue which still leaves the exchange short?)
The volume of bets on our risk sports products doubled in the period, driven by the launch of the new Sportsbook. Despite lower gross win margins, Sports revenue from sustainable markets was up 52%. Lower international revenues, driven by market exits, meant that overall revenue was up 18%. (Sportsbook still appears to only a small part of the business and only grew £600k YOY)
Games revenues were down 31%, driven predominantly by significant declines in international markets as well as weak margins in risk products and a continued poor poker performance. (Gaming has plummeted £6m)
The number of active customers in sustainable markets was up 10% to 396,000, driven by the new Sportsbook. The number of actives in other markets was down 31% at 134,000. (Betfair no longer seem to publish KPI's, but in Q1 FY11 they reported total actives of 526,000 - Would be nice to see what the sportsbook numbers were vs the exchange)
I'm not sure what to make of this statement - "We have introduced Cash Out to our Sportsbook, enabling customers to lock in profits on singles and accumulators, bringing the first of many Exchange-based features to the product." Why am I confused? Because we all know now that the 'cash out' on the sportsbook has nothing to do with the exchange. So I'm not sure why you would try to position as such? Maybe I mis-read this? Comments welcome!
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andyfuller
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- Joined: Wed Mar 25, 2009 12:23 pm
I can't remember if they use the exchange to off load some of the risk? Guessing from your statement Peter they don't?Euler wrote: I'm not sure what to make of this statement - "We have introduced Cash Out to our Sportsbook, enabling customers to lock in profits on singles and accumulators, bringing the first of many Exchange-based features to the product." Why am I confused? Because we all know now that the 'cash out' on the sportsbook has nothing to do with the exchange. So I'm not sure why you would try to position as such? Maybe I mis-read this? Comments welcome!
Another angle could be that it is effectively the same as trading out of a position (all be it at a much worse price than you could do on the exchange). As such it is based on what people do on the exchange, buy and sell positions.
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andyfuller
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- Joined: Wed Mar 25, 2009 12:23 pm
Not sure really what the driving force has been behind the recent rises in the share price post failed take over attempt but they have been pretty impressive.
Prior to take over announcement they were 695.5.
After announcement it had fallen through it was 839.5
Currently up ~18% since then at 990 having had trouble breaking through 1000.
Up ~42% since pre-take over announcement. Not bad but still a long way to go to get back to float levels and some big hurdles up ahead around ~1070. I wouldn't be a buyer around these levels.
Prior to take over announcement they were 695.5.
After announcement it had fallen through it was 839.5
Currently up ~18% since then at 990 having had trouble breaking through 1000.
Up ~42% since pre-take over announcement. Not bad but still a long way to go to get back to float levels and some big hurdles up ahead around ~1070. I wouldn't be a buyer around these levels.
No they don't. In a previous statement they said that's how it was going to happen. But when they did it somehow that had morphed into them hedging themselves.andyfuller wrote:I can't remember if they use the exchange to off load some of the risk? Guessing from your statement Peter they don't?
When I last spoke to them they said there were working on a number of ways to link the exchange into the sportsbook. So I guess we will have to see if that transpires.