Monday 16 July 2018

Overall revenue up at Paddy Power Betfair, but online revenue declines

Paddy Power Betfair’s outgoing CEO Breon Corcoran
Paddy Power Betfair’s outgoing CEO Breon Corcoran
Ellie Donnelly

Ellie Donnelly

Revenue at Paddy Power Betfair was up 9pc to £440m (€502m) year-on-year in the three months to 30 September.

The strong performance was driven by an 11pc growth in sports revenue, according to the group's trading update.

Underlying earnings before interest, taxation, depreciation, and amortisation was up 7pc year-on-year to £121m (€138m), an impressive result given the contribution of the European Championship to the Paddy Power Betfair results in 2016.

The group expects its full underlying earnings before interest, taxation, depreciation, and amortisation for the year to be in the region of £450m and £465m.

Operating profit at the group was up 5pc year-on-year in the three month period to £101m.

"Q3 was an an encouraging quarter for Paddy Power Betfair, with good stakes growth despite the absence of a major football tournament. Our international businesses performed particularly well," Breon Corcoran, CEO of Paddy Power Betfair, said.

However online revenue was down 3pc to £216m against what the gambling firm described as "a tough comparative period that included a strong contribution from the concluding stages of the Euro 2016 tournament," with both sportsbook and exchange revenue down 2pc and 5pc respectively.

In Australia revenue increased by 29pc in local currency, driven by a 33pc increase in stakes. Revenue also increased in the US market, up 18pc in local currency, driven by a strong performance in sports and gaming revenue.

Meanwhile Paddy Power Betfair reported an increase in revenue from its retail shops, up 12pc to £85m.

During the three month period the group opened two new shops in the UK and one in Ireland, taking its total number of shops to 623.

Paddy Power Betfair said that it has also entered into an agreement to acquire a further five UK shops.

In August this year the group announced the planned departure of its CEO Breon Corcoran.

Mr Corcoran, who has held the role of CEO since the £7bn (€7.9bn) merger of Paddy Power and Betfair, is being replaced by Peter Jackson, a non-executive director at the bookmaker.

In announcing its results, the group confirmed that Mr Jackson will take up the position of CEO on 8 January 2018.

Mr Corcoran will continue to lead the Group and remain on the Board until that date.

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