Paddy Power profit hit by customer friendly results

kennedy
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.”

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