Retail & digital uplifts see Paddy Power post H1 2015 profits surge

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Andy McCue – CEO – Paddy Power

The announcement of a potential Paddy Power and Betfair merger has dominated industry headlines this morning.

Nevertheless Paddy Power governance delivered a  very strong H1 2015 interim report (period ending 30 June), as the operator posted top metric growth for both digital and retail divisions. Paddy Power would record a group operating profit before taxes of €80 million up 33% on 2014’s corresponding €60.1 million.

The bookmaker would announce double digit revenue uplifts to its digital and retail divisions, as group net revenues reached €528 million up 25% on H1 2014 €396 million.

Detailing company performance, Paddy Power would highlight a 34% revenue uplift for its digital sports betting division to €345 million (H1 2014 – €242 million). Its strong online sports betting performance, combined with 14% uplift in igaming revenues to €80.9 million, would see Paddy Power’s digital businesses contribute €70 million of operating profits.

Digital performance had been driven by strong player activity on its mobile betting verticals, the operator’s governance further highlighted that its international digital operations were gathering strong momentum, highlighting improved revenue and operating performance in Australia.

UK and Irish retail betting divisions contributed to the operator’s strong opening, with 9 and 10% respective revenue increases. UK retail which saw 13 new shop openings saw operating profits climb 3% to €12 million. Furthermore Paddy Power reported a strong 36% operating profits rise to €10.6 million

Andy McCue, Chief Executive, Paddy Power plc, commented on H1 2015 performance

“Paddy Power has delivered a very strong performance in the first half with net revenue up 25% in constant currency and operating profit up 33%. Underlying operating profit was up 68% excluding the impact of new taxes and product fees. While this performance was broadly based across all our online and retail divisions, Australia has been the standout with reported operating profit up 78%. “

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.”

Paddy Power H1 2015 Performance Overview 

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