LONDON, July 13, 2017 /PRNewswire/ --
Smarkets, the event exchange that allows people to trade sports, politics and current affairs, has announced a remarkable year-on-year increase in group business profit* of 160% for the year ending December 31, 2016.
The figures for 2016 represent a third consecutive year of profitable growth for Smarkets, which saw group revenue climb 144% to £25.4m (2015: 10.4m) and overall business profit jump 160% to £13.7m (2015: £5.2m).
There was more than £2.6 billion of trading volume on the Smarkets exchange in 2016 (up 141%), as the company's near-200,000 users traded popular sporting events like the Cheltenham Festival and Euro 2016, as well as political outcomes such as the EU referendum and US presidential election.
In conjunction with financial growth, Smarkets also received a number of awards in 2016, notably finishing in the top five for both the Sunday Times Tech Track 100 and Deloitte Fast 50 lists of the fastest growing private technology companies in the UK.
CEO Jason Trost said: "Our mission is clear; we are striving to establish ourselves as a top-tier technology company. I strongly believe that the results of the past two years show the positive trajectory of the business, demonstrate our significant growth opportunities and confirm our ability to challenge an industry ripe for disruption.
"We will continue to further develop our product to deliver a unique and fair trading experience by offering superior technology and industry-leading commission rates and will explore moving into new regulated markets to increase our customer base."
Towards the end of 2016, Smarkets opened its first office in the US to access engineering talent and now has locations in London, Los Angeles and Malta as a base to tackle other inefficient verticals.
The full 2016 annual report is available here.
*Management monitors performance using a measure of pre-tax profit referred to as Business profit which excludes the effect of share based payment transactions from Administrative Expenses. In 2016, pre-tax profit was £10.5m with share-based payments of £3.2m, providing a Business profit of £13.7m.
Launched in 2010, Smarkets is one of the world's leading betting exchanges that makes trading on events secure, efficient and exciting. Headquartered in London, the company was founded by a team of finance and software engineering professionals and is backed by Passion Capital and Deutsche Telekom. The Smarkets exchange has processed over £5 billion worth of transactions for customers across the company's licensed and regulated markets. The Smarkets group comprises of Smarkets Limited, a software development company, Smarkets Malta, operator of the Smarkets betting exchange, and Hanson Applied Sciences, a liquidity provider. For more information, visit http://www.smarkets.com, http://www.smarketshq.com.