Paddy Power Betfair reports £5.7m losses following merger costs
Paddy Power Betfair has announced revenue growth of 18pc for 2016 in its first full year results since a merger of the two companies last year.
However, the group announced it had made losses of £5.7m last year due to a number of one-off costs related to the merger.
Paddy Power Betfair said it had incurred paid £50m in merger related expenses as well as an additional £66m in “merger integration costs.”
Group revenue hit £1.5bn (€1.7bn) last year with the company reporting double-digit growth across each of its four divisions.
Underlying EBITDA- which calculates net profit, interest, taxes, depreciation and amortization- rose by 35pc to £400m.
Underlying profit was up by 44pc to £330m. The company said it would provide a final dividend of 113p per share.
The company said it had completed a number of operational changes that allowed it to save costs. It is expected that further cost-saving measure will be achieved this year through the roll-out of new technology platforms.
Paddy power Betfair said that trading so far this year has been in line with company expectations.
“2016 was a transformational year for Paddy Power Betfair with much of the integration of the businesses completed sooner and more efficiently than expected,” said Paddy Power Betfair chief executive Breon Corcoran.
“We have created a business with considerable scale that is stronger and better able to compete than either of the individual legacy companies. The group is well positioned to deliver sustainable, profitable growth," Mr Corcoran added.