Paddy Power sees H1 growth slowdown

Paddy Power sees H1 growth slowdown

Tuesday, August 8, 2017 Posted by Joseph Streeter
The company attributed the slowdown to the lack of a major football tournament and unfavourable sports results

Paddy Power Betfair (PPB) has reassured investors that the UK sports betting and online gambling giant is “well positioned for sustainable and profitable growth”, despite reporting a slowdown in revenue growth for the first half of the year.

In the six months to June 30, PPB reported revenues of £827 million, up 9% on the prior-year period, but down on the 18% growth rate achieved between the first half of 2015 and 2016. Gross profit was flat at £342 million.

The company, which was formed through the February 2016 merger between Paddy Power and Betfair, attributed the slowdown in growth to the lack of a major football tournament and unfavourable sports results.

In the first quarter of 2017, revenue rose by 23% as PPB benefited from favourable sports results. This success was partially offset in the second quarter, however, as last year’s Euro 2016 football tournament made for a tough comparable period and resulted in a 2% dip in year-on-year revenues.

PPB’s latest financials were published just a day after Breon Corcoran announced he was stepping down as group CEO. He will be replaced by Peter Jackson, former UK chief executive of payments group, Worldpay.

Totally Gaming says: PPB was keen to emphasise that this decrease in growth did not reflect any potential turbulence during the integration of the £5bn merger between Paddy Power and Betfair. Instead, the company attributed the slowdown in growth to the lack of a major football tournament and unfavourable sports results pointing towards 2016 being a tough comparative year, with Euro 2016 playing a big part in last year’s rapid growth.

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