Paddy Power reports lower-than-expected revenue figures
Shares in Paddy Power closed little changed this evening after the bookie reported revenue figures that fell slightly short of some analyst expectations.
The gambling firm said that revenue between July and mid-November rose 23pc. It said activity in the period had been moderated by factors including weather-related racing cancellations and the Olympics. Shares closed up 6pc at €54.55 after falling as much as 3pc during early morning trading.
In an interim management statement this morning, Paddy Power said that those moderating factors were offset by more favourable sports results that helped it boost its gross win percentage above levels it would have expected.
Paddy Power, which employs nearly 2,200 people in Ireland and last month announced plans to recruit a further 900 by 2015, said its business in Australia also performed strongly in the period. Its online turnover there was up 24pc and Paddy Power said that there was no slow down in growth compared to the first half of the year.
“Despite a competitive high-street environment, UK retail performed well with like-for-like net revenue up 5pc, driven by strong sportsbook growth of 12pc, offsetting a decline in machine gaming of 4pc,” it added.
Paddy Power made a €67.1m operating profit in the first six months of 2012 – up 13pc, while net revenue rose 29pc to €311m in the period. The company said in August that €30m was bet with the group on Olympic events this year - that's compared to the €2.5m that it generated from bets during the Beijing Olympics four years ago.