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Paddy Power-Betfair Releases First Quarter Financials

Paddy Power-Betfair has posted its first quarter 2016 financial results, noting company-wide growth in both profits and revenues.

Key financial indicators for the period ending March 31st, 2016 were:

  • Revenue up 16% to £ 339 million, with good performances across all divisions;

  • Online revenue up 17% to £ 195 million, with sportsbook stakes up 23 percent;

  • Australia revenue up 25% to £ 58 million, with sportsbook stakes up 31 percent;

  • US revenue up 22% to £ 20 million;

  • Retail revenue up 5% to £ 67 million, with sportsbook stakes up 9 percent.

  • EBITDA up 27% to £ 59 million;

  • Operating profit up 36% to £ 43 million;

  • Sales and marketing spend increased by £ 13 million or 22 percent, and new taxes and product fees increased costs by £ 3 million, primarily relating to point of consumption tax in Ireland and increased machine gaming duty in the UK.

  • As at 31 March 2016, the group had net debt of £ 54 million, excluding customer balances.

  • Management is confident that its target of delivering synergy cost savings of £ 50 million per annum as a result of the merger will be achieved.

Commenting on his company's performance Paddy Power-Betfair CEO Breon Corcoran said, "All four of our brands − Paddy Power, Betfair, Sportsbet and TVG ---− continue to trade well in a highly competitive environment. This good start to the financial year is a credit to our colleagues, particularly at a time when we are bringing together two businesses. Our marketing, technology and operations performed well throughout the key spring racing period and we are now focused on preparations for Euro 2016.

The post-merger integration is on-track. A strong leadership team is in place and restructuring of the business has commenced. We are working to bring the best of each business to the combined Group and customers are starting to see some early benefits as we roll out product features across the brands."

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bgsharpe
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13 May 2016 - 10:23pm
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It was questionable I think if the merge between two of the leading sport bookies will have a positive effect over their business but obviously so far so good for them. The company is very strong both on UK and European market and at least in Eastern Europe Betfair is one of the few leading bookies which operates legally, so it promise bright feature for the company.

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