Reporting on its full year 2014 performance (preliminary results) Paddy Power recorded corporate net revenues of €882 million (FY 2013 – €746 million), as the operator was able to announce record net profits of €167 million up 18% on FY 2013 €141 million.
Paddy Power governance has been able to announce a €8 cash return per share to investors from its surplus cash generated.
Online Growth & International Expansion
Throughout 2014, the operator saw strong performances from its digital products which managed to expand into international markets as its online business division generated €126.6 million in operating profits (sportsbook profit: €75 million).
Paddy Power recorded growth in all top line metrics with new player acquisition up 28% and player activity up 24%. The operator further stated that it had seen strong take up of its mobile product offerings with 77% of active sports betting customer wagering through its mobile betting device.
Paddy Power management highlighted the company’s impressive expansion in the Australian online sports betting market, as the firm saw a 21% increase in active player wagering which contributed to an Australian online operating profit of €52 million for 2014.
The firm also witnessed positive gains on its Italian business division which had grown net revenues to €7.9 million
Retail Growth and New Betting Shops
Paddy Power were able to beat retail market expectations, as the operator saw growth in its UK retail business division recording operating profits of €21.2 million (2013: €13.9 million). Paddy Power opened 55 new betting shops in the UK in 2014.
Irish Retail operating profit up 15% to €15.6 million. Like-for-like net revenue up 3%. We now operate 243 shops with a record 20 shops opened in 2014.
Andy McCue, CEO Paddy Power plc said:
“2014 was an excellent year for Paddy Power with robust double digit growth in stakes, revenues and profits, and a marked increase in customer acquisition. We are strongly positioned in the key growth areas of online and mobile, whilst also benefitting from a differentiated and resilient retail presence. Our distinctive brands and deeply rooted marketing capability are core assets.
As I look ahead, the pace of change in the sector and in the wider consumer environment is intensifying. We continually develop and adapt to anticipate the needs of customers and maintain an edge in the market. Time and again we see that product is the key factor in attracting and retaining customers. We have re-organised the business to significantly sharpen our focus on product differentiation and innovation, and to increase in-house development.
This, combined with clear investment priorities, will pave the way for sustained performance and market leadership. This year has started well, including a positive impact from recent euro depreciation.”
Paddy Power Performance Overview