Presenting its 2017 H1 interim results, the governance of FTSE100 listed Paddy Power Betfair Plc (PPB) maintains that the company is ‘well positioned for sustainable and profitable growth’.
Despite being set against a tough 2016 comparative period (featuring UEFA Euro 2016), PPB delivered a 9% increase on pro-forma revenues of £827 million (H1 2016: £759 million) combined with a group EBITDA of £220 million up 21% on H1 2016’s £181 million.
Delivering a ‘solid’ H1 2017 performance, PPB governance would declare group operating profits of £180 million, combined with a group operating profit of £104 million (H1 2016: – £48 million).
Updating investors PPB governance maintains that its group full-year EBITDA guidance remains at the £445-465 million range, which will include the recent M&A cost of US fantasy sports operator DRAFT for $20 million.
Issuing a forward looking statement, PPB governance detailed that the company was on track to deliver on its ‘group technology integration projects’ which would deliver major corporate ‘cost, scale and risk/trading benefits’.
PPB CEO Breon Corcoran detailed: “The focus of this investment is to use technology to improve efficiency and minimise the cost of servicing our customers and to further enhance our customer proposition.”
Having yesterday announced his departure as leader of PPB, a confident Breon Corcoran detailed to investors that the firm had prioritised ‘technology first initiatives’ that would maintain the firm’s position as the global betting market’s front-runner. Corcoran maintains that PPB stakeholders will see the group advantages of its investment as ‘long term structural advantages’
“The integration of our technology platforms is on track for completion by the end of the year and will bring significant benefits including increased quantity and pace of new product development in 2018 and beyond,” Corcoran explained.
“Ahead of that, our customers and shareholders are already seeing benefits from efficiencies and investments. In the first half alone, customers enjoyed approximately £30m of extra value through better odds, more generous offers and new loyalty benefits.”
Paddy Power Betfair Plc – H1 2017 – Performance Overview.