Betfair Grp Share Discussion Threads

[happyinvestor411] 08/11/2010 11:52

Brownie

You mention they only take commission from winning bets? When the bet loses they get the stake money, so surely its win win for betfair because of the 2-4point margins they offer on backing and laying.
I may have overlooked something and if i have please let me know if i have but the way betfair operates surely they cant lose?

[the failed investor] 07/11/2010 04:55

Some bookies offer Guaranteed prices to try and compete with Betfair, it worked.................................for a while, problem was the bookies couldn't take the pain forever, Stan James withdrew it last week.

I believe they know they're beaten, I forsee a World with no high street bookies in 10/20 years time, Betfair have the monopoly, as long as they don't get greedy and keep paying good money to the levy then the investment here is a no brainer, I wouldn't be surprised to see a £300 share price here in 5 years.

The likes of Ladbrokes will try and buy it but the business model means it doesn't need to be sold.

I don't invest in anything these days, don't need too but I know I'm right about this firm, hold on and reap the rewards.

[wjccghcc] 07/11/2010 00:26

They hardly dumped - the directors sold 10% of their holdings. And they have a lock up on the rest for 12 months.

midasmonkey, it's probably post-flotation turbulence. Non firm holders will take a quick turn after the successful float and it takes time for the share price trading to establish a normal pattern. SGP behaved similarly but has since doubled.

[zapa] 05/11/2010 16:53

you forgot too that the directors dumped ....says it all betunfair.

[midasmonkey] 04/11/2010 10:08

Any opinions as to why the share price is steadily sinking after the great start ?

[brownie69] 03/11/2010 10:44

Happyinvestor.

True they only get commission from one side. However using a matematically simple example. If £50 is match at even money there is a total of £100 wagered. ie £50 from each customer. Commission is paid on a sliding scale according to the users volume of business and varies between 2.5% and 5%. Thus taking 5% of the £50 won (its only payable on winnings) gives a margin of 2.5% of the tatal amnount wagered.

Thus Woolwich's example gives a false idea of the best margins they can acheive.

[happyinvestor411] 02/11/2010 12:05

Brownie

Surely with the options of laying bets and backing bets their mark up covers them. Where does their liability come from if i can back a horse to win and you can back it to lose? Only one of us will win, BF get their commision and the losing bets cover the winning bets?

Im fairly new to the markets so there are probably more figures to the equation that i havent taken into consideration.

[brownie69] 29/10/2010 15:30

Woolwich,

They only take commission from winning bets, thus you need to half your margin estimate.

[brownie69] 29/10/2010 15:29

WJCCGHCC You are correct but UK still the largest single market they have. Other markets will develop as well and realise that the recreational customers are getting killed quickly by these sharp pro trading operations.

[woolwich2] 29/10/2010 14:58

once a gambler always a gambler
they take 4% from every winning bet
5 years betfair profit should be £365m pa
im banking on this senorio
gl 2 all

[wjccghcc] 28/10/2010 22:21

brownie, the UK no longer dominates their business - last year it was 49% revenues and this year should be below 45%.

[brownie69] 28/10/2010 18:42

Gluefactory. Its my opinion that the market will pre empt this flood of stock onto the market. Lock up should have been longer.

Montyhedge, Understand your point although I think that certainly in the case of the Shops business the demographic of customers is much different and the online departments of the main bookies seem to be doing OK.

I think Betfair are facing a long term structural problem. They have been very sucessful and pretty much all of their target market in UK (which dominates their business) is aware of them. However its my belief that many of the recreational customers have been badly burned by the very sharp professional trading operations that dominate on the platform ie the leisure players lifetime on BF is short and they are hard to attract back. They need this recreational money as the pros are only taking money out of BF.

[zitec] 27/10/2010 14:31

This will do well, superb product with huge potential growth from LMAX.

Richard Koch retains his 7% holding frm being a very early investor, a very fine innvestor who knows when he is on to a good thing. Anyone who has read 80/20 Principle and The Star Principle will know this guy has the Midas touch.

I can see this up to £20 by the end of the year. Excellent growth and potential takeover target.

[bonsor7] 27/10/2010 07:14

Betfair Group plc

Admission to trading on the London Stock Exchange

Further to its announcement on 22 October 2010, Betfair Group plc ("Betfair") announces that its ordinary share capital of 106,935,448 shares has today been admitted to the Official List of the UK Listing Authority and to trading on the London Stock Exchange's main market for listed securities under the ticker "BET". Further information about Betfair is available on its website at

[wylecoyote] 26/10/2010 22:18

Good Looking prospects, the gross margin is incredible. However, the share price seems a little overvalued to me especially seeing that only 10% of shares will be made available. Worth watching all the same.

[gluefactory] 25/10/2010 13:42

Remember main shareholders are locked into a 180 day hold on these so I do not expect the share price to fall greatly over the next 6 months

[montyhedge] 25/10/2010 11:46

Seen their figures, says it all.

[isis] 25/10/2010 11:35

Have you been down a High Street lately?

[montyhedge] 25/10/2010 11:32

Betfair have killed the traditional bricks and mortar bookies.