Euro 2016 helps Paddy Power Betfair make up for disastrous Cheltenham
Published 04/11/2016 | 07:34
A strong end to Euro 2016 has helped betting giant Paddy Power Betfair (PPB) regain some of the ground lost through a disastrous Cheltenham earlier in the year.
The recently merged entity reported revenue of £404m (€454m) in the three months to the end of September, up 25pc on the same period last year.
The surge in income was driven largely by strong growth in the company's sportsbook stakes, up 26pc. PPB benefited by £28m from the weak sterling when non-UK revenues were translated across.
Elsewhere earning before interest tax depreciation and amortisation (EBITDA) rose by 53pc to £113m.
The strong quarter has caused the company to up its earnings target for the year to between £390m and £405m. The betting firm also posted a 68pc increase in its underlying operating profit for the period, up to £95m.
PPB chief executive Breon Corcoran said it was another good period for the business.
"We are continuing to focus onbuilding a stronger combined operation by exploiting the unique assets and capabilities of each legacy business, and on using our scale to better serve our customers," he said.
Paddy Power and Betfair began trading as a single entity in February and the company has been tasked with delivering £65m of annual savings. That process is ahead of schedule and PPB expects £25m of synergy benefits this year, £5m more than was originally forecast.
"Work is underway to combine the best of Betfair and Paddy Power's technology into a multi-brand, multi- channel, multi-jurisdictional platform that will start to unlock the full potential of the group's scale and will lead to increased pace of development and faster roll out of new products," Mr Corcoran said.