This is a miracle story in the making and the hero is none other than Betfair. In the midst of the current global recession where doom and gloom are the norm, Betfair, the mega online wagering exchange in the United Kingdom showed them all this week that there is light at the end of the tunnel. Its revenues have leaped another 27 percent to £303 million up to April 09 this year.

Revenues have doubled in the last three years for Betfair. Despite investing heavily in offshore expansion it continues to grow its market share and build its customer base, with no debt increase.

Fueling the rise in Betfair’s fortunes was a 20% jump in its sports division and 31% growth in its games division. It’s also profiting overseas, where nearly half of its revenues are now from its international business ventures. This year, new acquisitions include the TVG Network in the USA which was recently purchased for $50 million.

Betfair has turned in a profit of £72 million, up 29%. It now has 652,000 registered users which is up 25% from the previous year, with some £240 million deposited in their online accounts.  The online exchange model, which allows people to act as either bookie or punter, clearly looks like a better value option than the high street operators offer and since Betfair takes its commission either way it is delighted.

For a company that began less than ten years ago, Betfair has done extremely well. Investors, about half of whom are a Japanese bank and a private equity group, at some point will want to reap the rewards of their input. There are rumors of a flotation of stock options in the near future.

Posted on: September 11, 2009

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