Online gaming firm Betfair announces flotation

21st September 2010, Comments 0 comments

Online sports betting giant Betfair said on Tuesday it was going ahead with a flotation expected to value the company at around 1.5 billion pounds (1.8 billion euros, 2.3 billion dollars).

The planned listing on the London Stock Exchange will enable founders Ed Wray and Andrew Black to sell some of their holdings in the company.

They launched Betfair 11 years ago and own a combined 24 percent stake in the firm, which has become the world's leading online sports betting site with three million registered users.

The flotation has been expected for some time, driven by the company's strong financial performance and strong growth.

In the year to April, net profit was 15.1 million pounds while revenue grew 13 percent to 340.9 million pounds.

Betfair was one of the pioneers of person-to-person sports betting by developing a market place, or "betting exchange" which allows customers to bet at odds sought by themselves or offered by other customers, bypassing the need for a traditional bookmaker.

© 2010 AFP

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