Betfair Feel the Freeze After 16 Per Cent Fall in Shares

December 15, 2010

According to Betfair, UK’s major betting exchange company has been hit hard by the weather after disrupted race meetings have seen its shares fall by 16%. Comments made with the company’s maiden results as a public company.

An underlying profit before tax of £16.9m (US$26.5m) was 49% higher for the six months to October than for the same period last year. The costs of the firms recent flotation means that pre-tax profits were down 18.9% at £7.4m ($11.6m).

The company said that cancelled race meetings due to freezing temperatures in the current quarter would hinder their growth but they remain confident that the full-year results would meet expectations. By mid afternoon on Tuesday the shares had fallen 14%, and they are currently 34% below their October flotation price.