Presenting his first trading updating as Paddy Power Betfair (PPB) Group Chief Executive Peter Jackson has prioritised ‘returning growth to Paddy Power operations’.
Updating investors on a successful full-year 2017 performance, in which PPB outperformed its market expectations, Jackson sets a high bar for PPB executives in 2018.
Jackson praised PPB development teams for delivering the group’s combined platform system this January, which PPB governance details as the ‘final piece of the merger integration’.
“The platform technology will give us scale, and help tackle the demands of being an effective multi-territory operator”, Jackson stated.
Whilst PPB continues to progress on its international ambitions, within the Australian (Sportsbet.com.au) and US markets (Betfair US), Jackson outlines European priorities, primarily focusing on returning growth to Paddy Power.
“For the group to achieve its long-term targets, it’s imperative that Paddy Power returns to growth. It has faced a number of headwinds in the last couple of years, but remains a great brand that can dominate mass markets”.
Jackson presents a breakdown of PPB’s ‘online revenues by brand & product type for 2017’, in which Betfair’s sportsbook has generated double-digit growth against Paddy Power’s stagnated performance.
Taking on the challenge of revitalising Paddy Power, Jackson outlines four main action points for PPB executives to undertake;
- Rethinking of Paddy Power’s brand values and ambitions within a crowded European marketplace.
- Improving the overall Paddy Power product proposition, which has lagged behind Betfair standards following the merger. Jackson states that this will be significantly helped by the group platform.
- Revamping Paddy Power’s customer loyalty program. Jackson details that PPB will make a significant investment in retention and customer rewards for recreational players.
- Significantly increasing Paddy Power’s marketing coverage, which Jackson believes has been below the level needed to operate as a mass market brand.
“The most present and clear European market opportunity is in returning the Paddy Power brand back to growth. The brand is a key asset to the group. In a crowded marketplace, it has a distinct personality, there are few other brands I would choose to target saturated marketplaces. Paddy Power must return to being a mass market leader.”
Outlining PPB’s objectives, Jackson has appointed Dan Taylor, Chief Executive of PPB Europe as the man to lead Paddy Power’s recovery.