Online and mobile lift Paddy Power results
Strong online and mobile growth has helped Irish bookmaker Paddy Power to report a 12% year-on-year rise in pre-tax profits to €77 million ($103.2 million) in the six months until the end of June 2013.
Online net revenue was up by 29% to €243 million, generating an online operating profit of €57.5 million – up 19% on the corresponding period in 2012, not considering currency value fluctuations.
In Australia, Paddy Power’s net revenue increased by 33%, leading to a positive 25% uplift in operating profit to €16.5 million.
In Italy, the company said that it now had a share of more than 9% of the online sportsbook market and close to 20% of the mobile market in the country.
Paddy Power’s mobile net revenue rocketed by more than 100% to €104 million, with 64% of active sportsbook customers and 36% of active eGaming customers carrying out transactions via mobile in June 2013. Mobile eGaming net revenue was up by 253%.
Paddy Power added in its interim results that a 22% increase in net revenue had left the company with €214 million in net cash, allowing the interim dividend to increase by 15% to 45 cents per share.
“Paddy Power had a very good first half,” Paddy Power chief executive officer Patrick Kennedy said.
“Revenues increased in every division with very strong growth of 29% in online, which delivered over three quarters of group profit. The excellent performance of our Australian business was a particular highlight.
“Almost two thirds of the Group’s online sportsbook customers now transact with us via mobile and this continues to grow.
“The second half of the year has started very well from a turnover point of view with sportsbook stakes up 25% in online and 4% in retail on a like-for-like basis.
“Despite very poor recent sports results, we are on track to achieve low to mid-double digit operating profit growth in constant currency in 2013. Currency translation headwinds if maintained at current levels for the full year would lower this constant currency year-on-year profit growth by 4%.”