Mobile Boost For Paddy Power – Interim Report 2013

Irish igaming operator paddy power published its 2013 interim report,publishing  to shareholders and investors a  12% year-on-year rise in pre-tax profits to €77 million ($103.2 million). Paddy Power stated that strong online and mobile growth had been the key drivers in the companies strong performance for the first half of 2013.

Net revenue generated through its digital platform had witnessed an increase of 29% to  €243 million, generating an online operating profit of €57.5 million, an increase of 19% on 2012 performance.

The Interim report revealed that Paddy Power’s mobile net revenue increased  by more than 100% to €104 million, Mobiel gaming net revenue was up by 253%, The igaming operator also stated that it had witnessed 64% of active sportsbook customers and 36% of active eGaming customers carrying out transactions via its mobile applications.

Paddy Power also witnessed growth in new markets, as it’s Australian operations saw a net revenue increase of  33%, leading to a positive 25% uplift in operating profit to €16.5 million. Furthermore Paddy Power commented that its Italian igaming operations now had a market share of 9% for the region and that it planned further growth through targetting the region with its mobile and tablet gaming products.

Paddy Power added in its interim results that a 22% increase in net revenue had left the company with €214 million in net cash, allowing the interim dividend to increase by 15% to 45 cents per share.

Below is a brief summary of Paddy Power chief executive officer Patrick Kennedy on his Paddy Powers Interim Performance for 2013:-

• “Revenues increased in every division with very strong growth of 29% in online, which delivered over three quarters of group profit. The excellent performance of our Australian business was a particular highlight.
• “Almost two thirds of the Group’s online sportsbook customers now transact with us via mobile and this continues to grow.
• “The second half of the year has started very well from a turnover point of view with sportsbook stakes up 25% in online and 4% in retail on a like-for-like basis.
• “Despite very poor recent sports results, we are on track to achieve low to mid-double digit operating profit growth in constant currency in 2013. Currency translation headwinds if maintained at current levels for the full year would lower this constant currency year-on-year profit growth by 4%.”