Betfair's policy of charging higher fees for high-rolling traders had an immediate effect on its performance, as the betting exchange operator saw interim pre-tax profits nearly treble to £20.8m (££7.44m in 2010). The new business model was responsible for the growth in profit, along with an increase in the number of "in-play" betting markets Betfair offers.
But underlying topline sales growth was only 1 per cent higher at £191m, up from £188m last year at a time when the company faces a tricky transition period between outgoing chief executive David Yu, interim appointment Stephen Morana and incoming Paddypower recruit Breon Corcoran, who arrives in August. Betfair has also appointed City veteran, Gerald Corbett, as chairman. The company is not short of honest effort when it comes to attracting new bettors; capital spending on new technology is forecast to hit £45m by the year-end.