Betfair continues to have more than it’s fair share of problems.
Since the company floated it’s shares on the UK stock market, the shares have dropped in value by a staggering 43%.
There are rumours that the company is looking for a new chief executive, as David Yu after some health problems, has apparently told the company that he would like to return to America.
This follows on from several middle managers leaving the company, either by mutual consent or to move on to other jobs in the industry.
Betfair are playing down the rumours at present, but the arrival of a new group operations director, Ian Chuter from William Hill, is seen by many as an attempt to address some of the company’s weaknesses.
A poll of the company’s employees showed that many staff believe that the company lacks direction.
Next week will see Betfair’s full year results table, and analysts at Morgan Stanley are predicting that they will announce a 9% rise in full year revenue and a 15% rise in profit before tax.
These results do not sound too bad for a company in some disarray!
So as politicians in Australia continue to refuse to regulate the online gambling business, so that they could gain some much needed tax revenue, they could do well to look at Betfair who are making good money in spite of internal problems, perhaps illustrating that internet gambling is a profitable business and is here to stay.