Betfair targets US and Italy as it swings back into black

Online gaming house Betfair today fixed its sights on Italy and the US after swinging back into profit during the first half of the year.

The company, which thwarted a bid from private-equity group CVC earlier this year, has been cutting costs and focusing on fewer markets under new boss Breon Corcoran.

It launched online casino operations in New Jersey late last month and now plans to set up a betting exchange in Italy. Betfair will also be splashing the cash on adverts to attract more punters.

Corcoran said: “Following cost reductions in the past 12 months we now operate as a leaner and fitter business, which means we can reinvest to generate revenue growth. Our sales and marketing budget is over £100 million this year. This enables a top-tier presence on Sky Sports, major investment in our online marketing capability and an exciting new partnership with Channel 4 Racing for 2014.”

Overall, the company reduced its operating costs by £18 million during the six months ending October 31, helping it turn a £64.1 million loss into a £31.7 million profit. Betfair shares rose more than 2% to 1,059p as it doubled its dividend 50% to 6p.