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June 19, 2021

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Paddy Power Betfair posts 18% increase in first-half revenue

Paddy Power Betfair posts 18% increase in first-half revenue
Revenue at Paddy Power Betfair rose by 18% to USD 1B during the first half of the year, with double-digit growth recorded across all of its four divisions.
United Kingdom | 08/24/2016

Revenue at Paddy Power Betfair rose by 18% to USD 1B during the first half of the year, with double-digit growth recorded across all of its four divisions.

O

nline revenue at the betting company was 20% higher at £440m (€513m), with stakes on the sportsbook rising by a fifth.

Revenue in the Australian market jumped 17% to £129m (€150m); US revenue also saw growth of 16% for the period, while retail revenue was 12% higher at £147m (€171m).

Earnings after day-to-day expenses (EBITDA) between January and June grew by 31% to £181m (€211m).

These are the first set of half-year results for the new company, which was formed in February after the £6 billion (€7 billion) merger of traditional bookmaker Paddy Power and online betting exchange operator Betfair.

 Meanwhile, in the second three months of the year, a strong Euro 2016 performance for the firm saw revenue jump 20% to £420m (€490m), with EBITDA for the period rising 33% to £122m (€142m) and operating profit for Q2 40% higher at £105m (€122m).

The company said integration following the merger is “progressing ahead of plan with the majority of actions already completed”, with cost synergies of £65m (€76m) expected in 2017 – a year earlier than originally thought.

The process of combining global operations includes up to 300 job cuts in Ireland.

Commenting on the results, Paddy Power Betfair CEO Breon Corcoran said: "Paddy Power Betfair has sustained good momentum through a period of considerable change.”

He added: “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".

Shares in the company are 1.46% lower in early afternoon trade in Dublin.

Stewart Kenny stepping down 

Paddy Power Betfair also announced today that Stewart Kenny has decided to step down from his role as Non-Executive Director on the board.

Mr Kenny co-founded Paddy Power in 1988 and was Group Chief Executive until 2002 when he retired from his executive role.

He was Chairman from 2002 to 2003 and has remained on the board as a Non-Executive Director for the past 13 years.

Commenting on Stewart's decision to step down, Chairman of Paddy Power Betfair Gary McGann said: "After 40 years in bookmaking and 28 years' involvement with this business, Stewart has an enviable record in the industry and leaves a great legacy.

“He was instrumental in creating a highly successful international business from a small domestically-focused retail operation at inception. Stewart, more than anyone, positively influenced the culture of the business.”

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