SBC News Voice of the Sports Betting Industry
Updating the market, FTSE-listed gambling operator Paddy Power Betfair (PPB) presented its proforma basis results (merged results) for Q1 2016 (period ending March 31).
The newly merged FTSE-100 enterprise (merger officially completed 2 February) reported group revenues up 16% to £339 million for its opening quarter performance.
PPB governance was pleased to report Q1 2016 metric growth, despite being impacted by unfavourable sports results which impacted the entire industry. The operator revealed that it paid out £20 million to customers during the week of Cheltenham 2016 which recorded £250 million staked on the racing festival.
PPB’s ‘digital’ division would contribute 55% of group revenues, reporting a 17% increase to £195 million driven by a 23% increase in sportsbook stakes and 5% growth in Exchange Product & B2B revenues.
The firm’s strong digital performance, would be further supported by revenue growth in its US (up 22% to £20 million) and Australia (up 25% to £58 million) betting divisions.
Reporting on earnings metrics, PPB would declare Q1 2016 EBITDA up 27% to £59 million with operating profits up 36% to £43 million.
Presenting PPB’s first FTSE market update, CEO Breon Corcoran commented
“This good start to the financial year is a credit to our colleagues, particularly at a time when we are bringing together two businesses. Our marketing, technology and operations performed well throughout the key spring racing period and we are now focused on preparations for Euro 2016.
“All four of our brands − Paddy Power, Betfair, Sportsbet and TVG − continue to trade well in a highly competitive environment.
“The post-merger integration is on-track. A strong leadership team is in place and restructuring of the business has commenced. We are working to bring the best of each business to the combined Group and customers are starting to see some early benefits as we roll out product features across the brands.”
