Sports results can't dent Paddy Power forecast
Published 18/11/2015 | 02:30
Paddy Power - which is planning a €7.5bn merger with Betfair - said that it expects its full-year profit to be in line with expectations.
The company said that while sports results in the latest period were unfavourable across the sector, this has been offset for the group by strong underlying growth.
The gambling group, headed by Andy McCue, said it expects its full-year operating profit to increase by a mid to high single digit percentage compared to 2014, when it reported an operating profit of €163.8m.
Paddy Power said that at its online operations, sports betting stakes were 23pc higher in the period from July 1 to November 15, and total net revenue in the segment was 7p higher.
In retail, sports betting stakes rose 12pc and net revenue by 7pc.
"In our UK and Irish online business, as expected, year on year revenue growth was impacted by the very favourable sports results and the World Cup within the comparative period, and total net revenue decreased by 9pc," according to Paddy Power.
The company has also launched a native app for Apple devices and will roll out a native app for Android devices next month.
At its Irish retail estate, like-for-like stakes placed rose 8p and net revenue was 4pc higher, helped by an improving economy. The company expects to update shareholders in coming weeks on its planned merger with Betfair.
The two firms have previously indicated that they hope the deal can be concluded early in the New Year.
Shares in Paddy Power were trading up over 1.5pc yesterday afternoon at €114.50, giving it a market capitalisation of just over €5bn.