Betfair’s majority owned financial trading product LMAX recorded pre-tax losses of £13.2m for the year ended 30 April, Betfair’s annual report has shown.
The platform only launched in October last year, offering trading in a variety of areas including market indices and commodities.
Goldman Sachs holds 12.5% stake in the parent company of the financial betting exchange, which was set up by Betfair as long ago as 2007. However, LMAX suffered an early setback with the resignation of chief executive Robin Osmond in April, the former Morgan Stanley head of global investment banking who was replaced by David Mercer after leaving in order to “pursue other opportunities in the City”.
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Chief operating officer Martyn Holman also left the platform soon afterwards, according to eFinancialNews.com, and he has recently been followed out the exit door by head of legal and compliance Dario Crispini.
June saw Betfair bring in Ian Chuter as group operations director and Michael Bischoff as director of information services, although the betting exchange is still looking for a new CEO after David Yu announced his intention to step down.
The London-listed company, which floated last October, recently released its first full-year results since its IPO, with group revenues up 8.1% year-on-year. Profits after tax were also up by 54.4% to £35.1m despite the impact of the LMAX losses. However, since the IPO, it has seen more than half of its share price wiped out and is now valued at £650m.