Paddy Power Betfair Releases First Half Financials

Recently merged gaming firms Paddy Power Betfair released their first half 2016 financial results, noting a large surge in revenues around the globe.

Key financial indicators for the first half ending June 30th, 2016 were:

  • Revenue up 18% to £ 759 million, with double-digit growth in all four divisions;
  • Online revenue up 20% to £ 440 million, with sportsbook stakes up 20 percent;
  • Australia revenue up 17% to £ 129 million, with sportsbook stakes up 30 percent;
  • Retail revenue up 12% to £ 147 million, with sportsbook stakes up 10 percent; and
  • US revenue up 16% to £ 43 million;
  • Operating leverage delivered underlying EBITDA growth of 31% to £ 181 million;
  • Marketing spend increased 31% to £ 37 million;
  • Interim dividend of 40 pence per share takes total dividends for the period to 52 pence per share.

Second quarter financial results were:

  • Revenue up 20% to £ 420 million, including a strong Euro 2016 Football performance;
  • Underlying EBITDA up 33% to £ 122 million;
  • Underlying operating profit up 40% to £ 105 million;
  • Merger integration progressing ahead of plan with the majority of actions already completed;
  • Anticipating £ 65 million of cost synergies with the full benefit to be achieved in 2017, a year earlier than originally envisaged;
  • Full year 2016 proforma underlying EBITDA is expected to be between £ 365 million and £ 385 million.

Commenting on the financials Paddy Power CEO Breon Corcoran said, "Paddy Power Betfair has sustained good momentum through a period of considerable change. The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule."

"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".

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24 August 2016 - 11:18pm

These are really impressive numbers when we know that the giant company is still in transition after the merge.
That progress belongs to the fact that they have huge advertising campaigns all over the world and I guess it's the right politics if you want you're brand noticed by the punters.