Paddy Power profit hit by customer friendly results

Patrick Kennedy – Paddy Power CEO

Paddy Power’s operating profit fell by 14% to €60.1 millon (£47.83 million) during the first half of the 2014, the betting and gaming operator stated that it had been hit a run of unfavourable results.

The operator stated that despite a poor first half to 2014, it expected a stonger second performance, despite an €11m headwind from product fees, new taxes and currency fluctuations.

Paddy Power CFO Cormac McCarthy commented on the company’s results:

“There has been an extraordinary run of results. We always say to people that the run of results can go against bookies. Every separate event is a new coin toss”

“The top line is powering ahead. We have seen a very strong return to more normalised sports results. That gives us a lot of confidence in the long run that our margins are fine,” McCarthy added, pointing to a 17 percent rise in the amount staked by customers and a 32% jump in its online customer base” (Reuters)

The betting firm said it had gained 795,000 new customers in the six month period – 148,000 of those during the FIFA World Cup.

Online active customer numbers are up 25%, according to the company, and Australia now accounts for almost 40% of the firm’s profit.

Patrick Kennedy, Chief Executive, Paddy Power plc, said:

“We had a cracking World Cup which generated stakes of almost €200m, 130% ahead of the previous tournament. Australia continues to power ahead and Italy has made significant progress.

The second half has started well with good stakes growth and a rebound in sports results. At this juncture, we expect mid-teen percentage growth in EPS for the full year, despite an €11m headwind from product fees, new taxes and currency translation.”

Check Also

Matchbook freezes UK activity following UKGC suspension

Closing Monday 17 February trading, online betting exchange Matchbook has been forced to suspend its …

BOS Sweden submits response to Spelinspektionen bet-type proposals

A document co-authored by Swedish online gambling trade association BOS and industry market intelligence firm …

Lloyds enhances gambling safety with Gamban

Lloyds Banking Group has announced a partnership with Gamban, providing customers of Lloyds, Bank of …