Paddy Power Revenues Top €1 Billion For the First Time
Paddy Power Betfair this week released its first financial figures since the merger of Paddy Power and Betfair. As the companies have not long been merged, Paddy Power unveiled its full year figures for 2015 while Betfair announced its third-quarter of 2016 results.
Revenues at Paddy Power weighed in at almost €1.1 billion, an increase of 24% compared to 2014, thanks to double-digit growth across all of its online and retail divisions. Operating profit is up 10% to €180 million, although this figure would have been up 50% had the Irish gambling giant not been hit with a €66 million bill for new taxes and product fees.
The financial report also shows that Paddy Power’s profits were dented by €10.2 million worth of one-off items, including €5.8 million in costs associated with the merger.
Betfair’s Q3 2016 figures also made happy reading for its investors with revenue increasing 21% to £138 million, driven by a huge 51% growth in sportsbook stakes and improved football results. Bookmakers have benefitted from some of the Premier League’s bigger teams struggling for form this season as these teams, such as Chelsea, are often used in bettors’ accumulator bets.
Breon Corcoran, former Chief Executive of Betfair and now Chief Executive of Paddy Power Betfair, said:
“We were very pleased to complete the merger of Paddy Power and Betfair, creating one of the world's largest online betting and gaming companies with enlarged scale, enhanced capability and distinctive complementary brands. These results show that both businesses entered this merger on the back of strong trading momentum.
Our belief in the strategic rationale for the deal has only been strengthened following our early days as a combined operator. The combination of two industry leading operators, with aligned strategies and a strong cultural fit, is hugely exciting and the enhanced efficiency from operating at greater scale means we are well positioned to compete in both existing and new markets.
The integration of the two businesses is progressing well and we look forward to capitalising on the opportunity we have to drive future profitable growth”
Gary McGann, Chairman of Paddy Power, revealed “The merger has created one of the world's largest online betting and gaming companies with enlarged scale, market leading capability and distinctive, complementary brands. On a proforma basis the enlarged group had £1,318m of revenues and £229 million of underlying operating profits for the year ended 31 December 2015. Our online businesses contributed 80% of Group revenues and 87% of operating profits.”
Shares in Paddy Power Betfair were trading at 9,620.00 pence per share at the time of writing, up 1.80% from the 9,450.00 price at the close of trade on March 8 when the results were announced.
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