Betfair reports better-than-expected year earnings

The company, which earlier this week announced it had begun the search for a new chief executive, said earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 27 per cent to £73.2m in the year to end April.

Revenue grew by eight per cent to £368.6m.

“Revenue growth during 2011 could have been stronger but we have delivered a significant improvement in margin resulting in profitability for the year above expectations,” said chief executive David Yu who said on Monday he would not be renewing his existing contract which runs until next year.

Betfair said today it would pay a maiden dividend of 5.9 pence per share and intended to repurchase up to £50m worth of shares.

The company’s shares have fallen from a listing price of 1,300 pence last October to hit a low of 714 pence earlier in June, weighed down by concerns over changes to online gambling laws in countries such as Germany and the suspension of its licence in Italy.