12/03/2013 10:31AM

Betfair income rises sharply

Email

Betfair, the British exchange-wagering company that owns Television Games Network in the U.S., had net income of $44.1 million in the first six months of its fiscal year, a sharp turnaround from the first six months of the prior fiscal year, when the company lost $106.3 million after taking a $132.2 million impairment charge.

Revenue in the first six months of the fiscal year was down 6 percent, to $308.3 million, according to financial statements released on Tuesday, reflecting the impact of the company’s decision earlier this year to withdraw from several countries that had raised questions about the legality of the company’s exchange-wagering platform. However, administrative expenses were down sharply in the first six months as well, in large part because of layoffs that significantly reduced the company’s payroll.

Revenue for the company’s U.S. operations, which includes TVG, was up 19 percent to $39.9 million, according to the financial statements. Handle through TVG was up 32 percent, the company said, in large part because of a new agreement making TVG the exclusive account-wagering provider for New Jersey residents.

Earnings before interest, taxes, depreciation and amortization for Betfair’s U.S. operations were $8.5 million in the first six months of the fiscal year, up 247 percent compared to the same figure in the first six months of the previous fiscal year, according to the financial statements.

In addition to TVG, Betfair’s U.S. holdings include an online casino that the company recently launched in New Jersey after that state authorized casino gambling on the internet earlier this year.