Paddy Power says online gains strong
Bookmaker Paddy Power said gains on the Internet offset a decline in business at Irish betting shops, giving it "confidence" for the rest of the year.
Gross win on the Internet, or the amounts lost by gamblers, grew by 32pc in the year through May 16, the company said today in a statement on the Regulatory News Service. Irish retail gross win dropped 6pc.
Paddy Power is trying to expand its Internet and overseas operations to compensate for declines at Irish betting shops.
It aims to have at least 150 shops in the UK by 2011 and last year acquired interests in Sportsbet and International All Sports to expand in Australia.
“Internet has been the star of the show,” said Finance Director Jack Massey, speaking in a telephone interview. In Ireland, “it’s been a difficult market, but we’re gaining share and we think we’ll come out in good shape.”
Paddy Power rose 50 cents, or 1.9pc, to €26.50, at 8:59am in Dublin after earlier gaining as much as 3.5pc.
The shares have risen 7pc this year, giving the company a market value of €1.27bn.
The company generated 85pc of its operating profit over the Internet in the second half of 2009, though 75pc is more typical, Massey said.
Paddy Power expects the World Cup soccer tournament, which starts June 11, will generate about €5m in gross win, from about €60m wagered, Massey said.
The amounts wagered should be at least double those from last year’s European Championship, he said.