Paddy Power tops €1bn net revenue ahead of merger

Paddy Power tops €1bn net revenue ahead of merger

Tuesday, March 8, 2016 Totally Gaming
Breon Corcoran said the results highlight both companies' "strong trading momentum" ahead of the merger

Bookmaker Paddy Power brought in net revenue of more than €1bn ($1.1bn) for the first time during its final financial year before merging with Betfair.

In its preliminary results statement, the gaming operator said Paddy Power’s net revenue was up 24 per cent to €1.1bn, with operating profit rising by 10 per cent to €180m as the company – which merged with Betfair last month - paid €66m in new taxes and product fees.

Paddy Power's online business saw revenue increase 23 per cent year-on-year, with the sportsbook and gaming divisions posting growth of 28 per cent and 10 per cent respectively. Its retail arm was up 6 per cent on a continuing basis, with 15 per cent growth in UK revenue.

In the same statement, Paddy Power Betfair revealed that Betfair’s revenue increased by 21 per cent year-on-year to £138m (€178.1m/$196.1m) during the three months to January 31, with the firm citing a 51 per cent growth in sportsbook stakes and improved football results as the main reasons behind this rise.

Revenue increased 31 per cent year-on-year following a 27 per cent increase in the number of active customers, while earnings before interest, tax, depreciation and amortisation for the quarter jumped 10 per cent to £26m.

Breon Corcoran, 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.”

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