Wednesday, 29 June 2011

Betfair Results and Full Tilt Update

Well quite a day all in all, don't you think?

Betfair Results first and all I can say looking at the detail of their results is they are not as bad as I thought they would be to be honest!

However when you factor in these figures include last year's World Cup and still show hardly any growth, not quite sure how they are going to grow this Year?

Just looking at the headline Profit figure (After Tax) - £35 Million. Is that seriously how much this supposed Betting Behemoth makes in a Year? Maybe it is becoming clear why there is hardly any competition in their space! If the Monopoly Provider only makes £35 Million and these results are considered good - Why would Ladbrokes (who incidentally made over £200 Million Profit last Year) be too bothered about trying to enter it? Betdaq just seem to lose money hand over fist trying to catch up.

The clear thing to me is Betfair will continue down the route of becoming a Traditional Bookmaker (Like Ladbrokes) but they seem to have a P/E ratio of over 30 while Ladbrokes and William Hill languish on about 12-14.

Why is that? Do people seriously think Betfair will break in to the US, China or similar without any competition springing up? Not likely imo. Do they have a 'Killer Story' any more?

Is the new Premium Charge likely to bring an influx of new Highrollers? New Accounts in different names probably to avoid the charges, but new blood? Not likely. For god's sake we all know people who have Multiple Accounts already - If I was desperate to post on their Forums or play Poker on there again I'd just open an Account in my wife's name.

I'll be watching liquidity after The Open Golf with interest.

Another thing how do they employ over 2000 People? What do they all do other than release upgrades nobody wants and generally move the Site from being innovative to run of the mill?

Personally I think Betfair and the space it operates is in has run it's course, so as I said yesterday if the Shares somehow get above £8, I'll be shorting them again.

Anyway enough of that on to Full Tilt..................

I saw the warning Tweets this morning and luckily for me manged to get on and withdraw $100 before the Site shut down:

I say luckily but I would imagine the chances of this actually appearing in my Bank at probably less than 5%. No real damage done but annoying all the same, because I actually enjoyed playing there - Especially Rush. If they do go under, please GOD, don't let Betfair buy the Software, IMO it's the best out there and I'd hate to see it ruined by a bunch of incompetents.

Feck me I'm a lucky boy I have got two sites to whinge about now :)

Good Luck all.


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