Profits tumble almost 25pc at Paddy Power owner
Profit before tax at Paddy Power owner, Flutter Entertainment, has tumbled 24pc to £81m (€88m) in the six months to 30 June.
The group’s underlying earnings were down 10pc year-on-year at £196m (€213m), on the back of tax and regulatory changes.
These changes include consumption taxes and product fees in Australia, fixed odds betting regulation in the UK, and the increase in Irish betting duty.
However, revenue jumped 18pc year-on-year to just over £1bn (€1.1bn) in the six month period, according to a trading update from the group.
Peter Jackson, CEO of Flutter Entertainment, said: "We have had another productive six months at Flutter Entertainment.”
“All divisions are performing strongly on an underlying basis and have responded well to the challenges faced. We are pleased with the progress we are making to build a more diversified and sustainable business.”
The company recorded revenue growth across all its divisions except retail, which fell 4pc year-on-year.
Online revenue was up 8pc, with growth in the group’s recreational customer base and roll-out of sportsbook country specific pricing for Betfair, partially offset by unexpected international market switch offs.
Meanwhile, Flutter Entertainment reported revenue growth of 16pc in Australia.
In the United States, where gambling laws were relaxed in a number of States last year, turnover increased by 148pc.
In Ireland, both online and retail revenue reported growth, with online turnover increasing to £54.7m from £53.5m, while its revenue from retail was £69m in the six months to 30 June 2019, up from £65.7m in the same period last year.
The retail division operates 626 Paddy Power betting shops across the UK and Ireland, the same number as at December 2018.