Paddy Power and Betfair strong financials follow merger news
Paddy Power and Betfair’s potential merger news was followed by the groups’ half yearly and quarterly results updates showing both operators enjoying good growth.
For the six-month period through to June 30, Paddy Power posted net revenue of €527.8 million, an increase of 33% on the €396.5 million recorded in the first half of last year.
Operating profit was also up 33% on a year-on-year basis to €80.1 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) hiked 27% to €106.1 million.
Reflecting on the results, Paddy Power chief executive Andy McCue said: “We have made substantial progress implementing the strategy we set out in March, with further payback to come from new mobile product releases, refreshed marketing campaigns and efficiency gains.
“We now expect full year 2015 reported operating profit to be a mid to high single digit percentage above 2014 and the consensus market forecast.”
Meanwhile, revealing its financial results for the three months through to July 31, Betfair announced that it achieved revenue of £135.4 million, which represents an increase of 15% on the £117.3 million posted in the corresponding period last year.
While sports betting remains the company’s main source of income, contributing £89.9 million to the total revenue figure, Betfair’s US business experienced the most growth in the quarter, with revenue from this division up 42% year-on-year to £20.1 million.
Betfair’s gaming arm also posted a 27% year-on-year jump in revenue during the first quarter.
Commenting on the results and the potential merger, chief executive Breon Corcoran said: “Betfair's current momentum is strong and the business remains well placed to execute against our strategy and to continue to deliver profitable growth
“The proposed merger with Paddy Power is hugely exciting; it would create a truly global sports betting group with unmatched products and talent, and significantly enhanced scale.
“The combined business would be one of the world's largest online sports betting operators, with revenues totalling more than £1 billion.”