Now LiveEvents
PokerStars Championship Prague
888poker
New poker experience at 888poker

Join now to get $88 FREE (no deposit needed)

Join now
PokerStars
Double your first deposit up to $400

New players can use bonus code 'STARS400'

Join now
partypoker
partypoker Cashback

Get up to 40% back every week!

Join now
Unibet
€200 progressive bonus

+ a FREE Unibet Open Qualifier ticket

Join now

Paddy Power Reports Record Profits; Plans To Return €392m to Shareholders

Paddy Power

Shares in Paddy Power continue to climb after its preliminary financial results revealed that the Irish gambling giant made record profits before tax of €167 million and that it plans to return up to €392 million to shareholders.

At time of writing, shares in Paddy power are trading for more than €75 each, valuing the company at more than €3.6 billion.

The company’s net revenue increased 18% to €882 million with pre-tax profits growing 21% to €167 million. These impressive figures were helped by the number of bets placed at Paddy Power increasing by 16%, the vast majority of which were placed at Paddy Power’s online operation, which is responsible for some 77% of the group’s operating profit.

Recently appointed Chief Executive of Paddy Power Plc, Andy McCue, said of the results:

“2014 was an excellent year for Paddy Power with robust double digit growth in stakes, revenues and profits, and a marked increase in customer acquisition. We are strongly positioned in the key growth areas of online and mobile, whilst also benefitting from a differentiated and resilient retail presence. Our distinctive brands and deeply rooted marketing capability are core assets.

As I look ahead, the pace of change in the sector and in the wider consumer environment is intensifying. We continually develop and adapt to anticipate the needs of customers and maintain an edge in the market. Time and again we see that product is the key factor in attracting and retaining customers. We have re-organised the business to significantly sharpen our focus on product differentiation and innovation, and to increase in-house development. This, combined with clear investment priorities, will pave the way for sustained performance and market leadership.

This year has started well, including a positive impact from recent euro depreciation.”

Paddy Power is currently sat on €285 million in cash, of which €67 million is customer balances. The company plans to move its current position of net cash to a position of net debt and that would enable it to return approximately €8 per share or €392 million in aggregate to shareholders.

The management team at Paddy Power are confident of continued success in 2015 thanks to sportsbook stakes being up 18% like-for-like and the company benefiting from a depreciation of the Euro, something that could see them profit to the tune of €5 million.

Lead image courtesy of the Paddy Power blog

Get all the latest PokerNews updates on your social media outlets. Follow us on Twitter and find us on both Facebook and Google+!

More Stories

Other Stories

What do you think?