Sunday 21 October 2018

Paddy Power Betfair sees full-year profits rise

Sales and earnings were helped by punters betting big on the Mayweather-McGregor fight late last year.

Paddy Power Betfair has released its full-year results (PA)
Paddy Power Betfair has released its full-year results (PA)

By Ravender Sembhy, Press Association City Editor

Paddy Power Betfair has reported rising full-year profit off the back of bookmaker-friendly results, but warned that punters are placing fewer bets as a result.

The company reported an 18% increase in full-year underlying earnings to £473 million in 2017 on revenues of £1.74 billion, up 13%.

Sales and earnings were helped by punters betting big on the Mayweather-McGregor fight late last year.

But the firm added that a “sustained period” of sporting upsets, which benefit bookmakers, “significantly affected” customer activity, including reduced re-cycling of winnings.

Shares were down more than 4% in morning trading at 7,885p.

Paddy also announced an additional £20 million investment in marketing and customer proposition to boost the brand.

Boss Peter Jackson said the company is readying for the World Cup in Russia this summer.

“Following the successful completion of our European technology integration, Paddy Power customers are now enjoying the fastest sports book app in the market.

“Our considerable development resources will now be focused on bringing more new products to customers, some of which will be delivered ahead of the World Cup,” he said.

In 2016, bookmakers across the board were boosted by the European Championships, in particular by England’s embarrassing exit at the hands of minnows Iceland.

The betting industry is also facing a raft of regulatory changes aimed at cracking down on problem gambling, including curbs on fixed-odds betting terminals.

But Mr Jackson said Paddy is “well positioned” to deal with any regulatory challenges.

Press Association

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