Paddy Power Betfair cites sports growth as revenue rises
Paddy Power Betfair has that said a year-on-year increase in revenue during the three months to September 30 was driven by growth within its sports betting business.
Revenue in the third quarter amounted to £404 million (€453.9 million/$503.7 million), which represents a 25% increase and a 15% rise in constant currency.
Sportsbook stakes climbed 26%, or 14% in constant currency, and were boosted by a strong end to the Euro 2016 national football team tournament.
Underlying EBITDA was up by 53% to £113 million, with an increased margin of 28%, while underlying operating profit jumped 68% to £95 million.
As a result of its performance in the third quarter, Paddy Power Betfair, which was formed earlier this year through the merger of Paddy Power and Betfair, said it now forecasts that it will achieve better-than-expected full-year results, with underlying EBITDA to amount to between £390 million and £405 million.
Breon Corcoran, chief executive of Paddy Power Betfair, said: “This was another good quarter for Paddy Power Betfair; we are continuing to focus on building a stronger combined operation by exploiting the unique assets and capabilities of each legacy business, and on using our scale to better serve our customers.
“Work is underway to combine the best of Betfair and Paddy Power’s technology into a multi-brand, multi-channel, multi-jurisdictional platform that will start to unlock the full potential of the group’s scale and will lead to increased pace of development and faster roll out of new products.”
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