Betfair's (BET) detailed trading statement read like the opening move in an organised bid defence, with investors served up higher than estimated cost savings of £30m, as well as top-of-the-range revenues of £387m and cash profits of £73m. But a lot depends whether investors find the turnaround plan outlined by the, so far, low-profile chief executive Breon Corcoran convincing enough to prevent a sale to CVC going through.
The higher level of savings is down to Betfair trimming the headcount by 500 in marketing and technical support to "grey markets" - countries where regulation of betting exchanges is uncertain - which will save £23m. A further £7m will come from cutting back on outside suppliers and generally trimming a large cost base, with around £10m of the savings going straight back into the business.
