Paddy Power Betfair doubles operating profit in the first three months of 2017
Paddy Power Betfair has reported operating profit of £91m (€107m) for the first three months of 2017, an increase of 114pc from the same period in 2016.
Revenues at the gaming company were £416m (€492m), an increase of 23pc year-on-year.
The increase in revenue was largely driven by its sportsbook business, which saw sportsbook stakes up 18pc, with the company noting it its results that 19 of the 28 races at the 2017 Cheltenham Festival were profitable for the company.
“Results at Cheltenham 2017 favoured bookmakers and this contributed to good revenue growth. Combined with the annualisation of merger-related cost savings and continued focus on operating efficiency, this resulted in a doubling of operating profits in the first quarter,” Breon Corcoran, chief executive, of Paddy Power Betfair said.
Gaming revenues for the group were up 6pc, largely driven by the US where revenue at its online New Jersey casino was up 68pc.
Online revenue increased by 15pc to £224m, primarily driven by a 33pc increase in sportsbook revenue. Sportsbook growth was driven by both improved sports results and 13pc growth in online stakes.
“A key strategic focus for 2017 is the integration of our technology platforms. This project is on track and we expect both our European brands to be operating on a common platform by the end of the year, at which point customers will start to benefit from increased pace of new product delivery,” Corcoran said.
The company said that it opened four shops in the UK and one in Ireland taking its total number of betting shops to 618 across the UK and Ireland.