View Full Version : Is The Betfair Business Model Broken
usedtolovetvg
02-23-2011, 03:35 PM
http://calvinayre.com/2011/02/23/business/betfair-share-price-drops-knuckles-rapped/
http://calvinayre.com/2011/02/23/business/betfair-share-price-drops-knuckles-rapped/
om the contrary, it's the future
they certainly got the most of their IPO
MPRanger
02-23-2011, 09:02 PM
om the contrary, it's the future
they certainly got the most of their IPO
What an interesting dichotomy. The value of a betting exchange whose business is to facilitate the trading of fixed values is afloat in a stock market. The company can operate as a private concern or be traded publically. Are there any profound truisms here?
I can't think of any as the company provides a service. It could be any service. Here we can see the REAL value of a percieved value broker. Would it be as interesting a question if it was a publically traded real estate firm?
If there are any, they must be about value. But isn't everything ultimately about value?
Native Texan III
02-24-2011, 07:40 PM
¿Puedes hablar inglés?
Helles
02-24-2011, 08:47 PM
Now THAT'S funny.
usedtolovetvg
02-27-2011, 05:09 PM
om the contrary, it's the future
they certainly got the most of their IPO
That may be true but they certainly left those who bought the stock holding the bag down 40%. Just wait til they announce earnings later this week.
highnote
02-27-2011, 05:49 PM
That may be true but they certainly left those who bought the stock holding the bag down 40%. Just wait til they announce earnings later this week.
They have often publicized their handle numbers. They make money on 1/2 the handle -- the winning half. And then, they make a few percentage points of that handle.
Then, they raised their rates to bettors who accessed their servers too frequently -- high volume players. I suspect they did this for two reasons: 1.) Many players complained about their bets being leapfrogged by computerized bettors and 2.) Now that big instituitions were involved in helping them go public it was necessary to increase revenue to make the company look better and keep the investors happy.
The question for Betair is whether or not they can gain access to the U.S. market and how long until they do. With Goldman Sachs behind them it has to help. The big financial firms write the rules nowadays (or at least have a huge influence on the laws)-- not the politicians we vote into office.
Gaining access to the U.S. market should boost share prices. Revenue is still the key component. I don't know how racetracks will share betting exchange revenue with Betfair. Racetracks must be concerned about what is going to happen to their pari-mutuel revenue.
It is certainly an interesting time in the racing industry.
That may be true but they certainly left those who bought the stock holding the bag down 40%. Just wait til they announce earnings later this week.
They've done pretty well despite the bad weather. I honestly think this a great share to own over the next 5-10 years.
Wrt the other poster, gaining access to the US market would definitely be a boost for the company, but I don't think the market is expecting this to happen any time soon. Europe/Asia/Australia are the key markets for Betfair right now (imo).
MPRanger
03-08-2011, 09:16 AM
¿Puedes hablar inglés?
Only occaisionally.
BIG49010
03-12-2011, 01:52 PM
Must be broken today, I like to check odds, and seems to be a problem with there website.
highnote
03-12-2011, 02:07 PM
Must be broken today, I like to check odds, and seems to be a problem with there website.
A friend of mine in England can't get on either.
A friend of mine in England can't get on either.
It's a shambles today. I saw plenty of in-running bettors at Sandown today ... they weren't pleased. Good day for Betdaq, though!
BIG49010
03-12-2011, 02:49 PM
I've been watching their stock, this could put real crimp in their earnings with a long outage on a Saturday!!
I've been watching their stock, this could put real crimp in their earnings with a long outage on a Saturday!!
If this happens again during Cheltenham, it will be pretty dramatic ... same as Amazon being down in the week leading up to Xmas.
Robert Goren
03-12-2011, 03:44 PM
There are some people who think it is one way to get the premium we pay for making a bet. I don't see the horsemen's groups allowing that to happen.
Robert Goren
03-12-2011, 03:52 PM
There are some people who think it is one way to get the premium we pay for making a bet. I don't see the horsemen's groups allowing that to happen.Should read
There are some people who think it is one way to get the premium we pay for making a bet down. I don't see the horsemen's groups allowing that to happen
There are some people who think it is one way to get the premium we pay for making a bet. I don't see the horsemen's groups allowing that to happen.
The powers that be over here didn't want it to happen either but they got a free market reality check pretty quickly.
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