Revenue and earnings increase at Paddy Power Betfair
Gambling giant Paddy Power Betfair saw its revenue increase 7pc year-on-year in constant currency to £867m (€966m) in the six months to June 30.
Underlying earnings before interest, taxation, depreciation, and amortisation (EBITDA) was up 1pc, to £217m in constant currency terms, according to interim results from the group released today.
Meanwhile profit before tax at the group was up 4pc to £106m in the six month period.
The results period covers the first two weeks of this year’s football world cup.
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"It has been a busy and successful few months for Paddy Power Betfair," Peter Jackson, CEO of Paddy Power Betfair, said.
"We have made substantial progress against our strategic priorities and trading in quarter 2 was good, with all brands and operating divisions contributing to the Group's double-digit revenue growth."
In the groups second quarter, revenue from online betting was up 13pc.
In Australia, revenue increased 19pc during the second quarter, despite what Mr Jackson described as "significant upcoming tax headwinds".
Meanwhile in the US, the group saw its revenue increase by 20pc during the second quarter.
The group said it welcomed a decision by the UK Government to reduce the stake on Fixed Odds Betting Terminals ("FOBTs") as it believes the negative sentiment towards these machines had "undermined the sector".
Looking forward the group said that the second half of the year had started "in line with expectations."
Paddy Power Betfair expects underlying EBITDA to be between £460m and £480m, before the impact of US sports betting. This it said reflected recent trading momentum, with a better than expected performance in gaming and strong conclusion to the World Cup, which was offset by continued weakness in exchange horseracing revenues, as well as the impact of additional Australian taxes and product fee increases, and the inclusion of the FanDuel daily fantasy sports operations.
Last week FanDuel, a subsidiary of Paddy Power Betfair, entered an agreement with Boyd Gaming to co-operate in the US sport betting and online casino markets as, as the group continues its US expansion.
The expansion comes on the back of a US Supreme Court ruling which earlier this year struck down a federal law that has restricted sports betting there since 1992. The decision permits individual states to pass their own sports betting laws.