Paddy Power extends B2B deal with PMU

Paddy Power extends B2B deal with PMU

Friday, June 26, 2015
Paddy Power wants to expand its white label division

Paddy Power has agreed a new five-year deal to offer its white label sports betting service to French gambling operator Pari-Mutuel Urbain (PMU).

The Irish gaming operator, which also provides B2B sportsbook services to British Columbia Lottery Corporation (BCLC) in Canada and Niké in Slovakia, first began providing services to PMU in 2010.

Paddy Power provides risk management, event management and fixed-odds pricing services to PMU, and chief executive Andy McCue believes the renewal highlights the success of the existing deal.

“Our focus on innovation within sports betting has led us to develop the most accurate and technologically advanced sports betting pricing and risk-management service in the industry,” Paddy Power chief executive Andy McCue said. 

“Over the last five years we have provided the most extensive sports betting product available in France, enabling PMU to launch and rapidly scale their business. This has been reflected in the results achieved and we look forward to the coming years of partnership.”

Paddy Power said that its B2B/eGaming net revenue was up 17 per cent to €140m ($125m) in 2014, and reiterated that it wants to expand this part of its operation.

Its FY2014 report read: “In markets which we deem unfeasible for B2C entry, we seek to offer B2B services. We currently have B2B partnerships in France, Canada, and Slovakia. We expect to add further partners in the coming years, without distracting from our B2C activities.”

Sports betting has been one of the few areas of success for PMU in recent times with year-on-year growth of 4.7 per cent to €60.2m in Q1 2015. PMU saw a 2.2 per cent drop in gross profits to €2.48bn and 4.1 per cent drop in turnover to €9.9bn for the 12-month period covering 2014, but sports betting was up 15 per cent to €228.7m and gross profits up 21.9 per cent to €47.1m.

Alain Resplandy-Bernard, deputy chief executive of PMU, said: “When PMU decided to jump into the sports betting adventure, it had no experience in this new business. PMU and Paddy Power have worked hand in hand to create an offer which would meet the French punters' needs and expectations.

“It has been a success. That's why we have decided to renew our partnership with Paddy Power for five more years.”
 

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