Posting its first set of interim H1 results (period ending 30 June), FTSE100 listed Paddy Power Betfair (PPB) has reported group revenues of £759 million recording double-digit growth across its four core divisions.
Closing its H1 2016, PPB would post a group underlying EBITDA of £181 million (H1 2015: £138 million). The increased top line metric growth would result in PPB declaring an underlying operating profit of £148 million (H1 2015: £106 million).
However, accounting for £195 million in accumulated merger costs PPB would be pushed to a group loss of £48 million (H1 2015: £106 million).
Paddy Power Betfair H1 2016 Performance Overview
Issuing a strategic update, PPB governance upped the firm’s post-merger synergy target to £65 million by 2017 from its original estimate of £50 million in combined group savings.
Updating the market, PPB governance would reemphasis that the company had focused H1 2016 on implementing an ‘optimal operational structure’, focusing on the keys areas of; combining its best assets, leveraging its enhanced scale and optimising brand positions within the UK and Ireland betting markets.
Despite recording H1 losses, PPB governance would detail that all its core divisions had recorded significant growth during the period. Group digital revenues hit £440 million, with sportsbook wagering up 20% following a strong Euro 2016 performance.
The firms strong combined digital performance was supported by Paddy Power retail who recorded a 12% revenue uplift to £147 million.
PPB governance would further highlight the firm’s strong international momentum with its Australian division revenues up 17% to £129 million and US revenues up 16% to £43 million.
Issuing a trading update for H2 2016, PPB governance would declare that it expects a full-year 2016 proforma EBITDA guidance of between £365-385 million.
Breon Corcoran, Chief Executive of Paddy Power Betfair commented on H1 2016 corporate performance:
“Paddy Power Betfair has sustained good momentum through a period of considerable change. The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule.
We are creating a world-class operation by exploiting the unique assets and capabilities of each legacy business, particularly in the key functions of technology, marketing and trading.
While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth”.