Paddy Power Betfair to cut one of its two media firms
Published 25/04/2016 | 02:30
Paddy Power Betfair is looking to drop one of its media agencies as it continues its cost-cutting programme.
The company, whose headquarters is in Dublin, is looking to put its entire £40m (€51m) media spend for the UK and Ireland into a single entity.
The newly-formed betting giant is pitting the two marketing firms that independently served both Paddy Power and Betfair prior to the merger against one another.
M2M has been responsible for Paddy Power's marketing end of the business since 2009, while MediaCom has been handling Betfair's since 2015. It is understood both Paddy Power's and Betfair's branding campaigns will remain separate.
In March of this year, the newly-merged business announced that Gavin Thompson, who was formerly Paddy Power's chief marketing officer (CMO), had left the company.
Betfair's Jonathan Devitt assumed the role of CMO at the new company.
Mr Thompson's departure wasn't the only high-profile Paddy Power figure to leave the FTSE 100 company.
Paddy Power's former chief executive Andy McCue became chief operating officer of the new firm before announcing that he too would leave the company at the end of April.
When asked about the pitching process, a spokesman for the company said: "This is a closed process which we wouldn't comment on at this stage."
Neither M2M nor MediaCom could be reached for comment.
While they are the only two companies bidding for the UK and Ireland business, it is unclear whether or not they will also compete for the firm's US and Australian business.
Paddy Power Betfair has no more immediate plans for its cost-cutting programme, it is understood.
Following the merger, Paddy Power Betfair employed a total of 7,200. Earlier this month, it took aim at the company's headcount. Around 300 jobs were cut at its Irish operations, while a further 350 jobs were cut in the UK.
Last year, Paddy Power's revenue increased by 24pc to €1.09bn in what was a record year. The new entity's share price has fallen by 19.2pc to £84.85 (€108.4) since the merger in February.