Paddy Power Has Strong First Half Of 2012

UK based gaming giant Paddy Power plc has released its first half financial results, showcasing higher before tax profits and net revenues.

Key financial indicators for the period ending June 30th were:

• Profit before tax up 21% to €68.7 million and diluted EPS up 25% to 121.5 cents, despite some adverse sports results since the company's May trading update;

• Interim dividend increased by 30% to 39 cents per share;

• Net revenue growth of 29% in constant currency with double-digit growth in every division;

• Four new online ventures with start-up losses of €6.3 million in the period;

• Strong balance sheet with net cash of €186 million.

Speaking about the results, Paddy Power CEO Patrick Kennedy said:

"This has been a very strong first half for Paddy Power. Revenue growth in our existing businesses has accelerated with a 29% increase and each of the divisions achieving double digit growth."

"We strongly promoted our brand, products and Money-Back Specials during €2012. This contributed to a 50% increase in online customer acquisition for the half year."

"We've also been busy on the development front with sustained investment, a successful launch into the Italian online market and three further new revenue streams set to contribute in the second half of the year. With our Online and Retail divisions both continuing to deliver substantial growth and our expansion plans progressing, we are confident in the Group's prospects for the rest of the year and beyond."

Other highlights for the period were:

• Online customer acquisition was up 50%, while active customers were up 41% to 1.2 million.

• Australian operations grew, with customer acquisitions up 73%, stakes up 24%, net revenues up 42%.

• Mobile operation revenues up 239% with 54% of sportsbook customers placing mobile bets in June

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