Bright Future At PaddyPower Betfair

Bright Future At PaddyPower Betfair

Thursday, 10 March 2016

The £5 billion ($7.13 billion) deal that last month saw online bookmaker PaddyPower combine with rival Betfair looks to have a bright future after both firms reported a rise in revenues for the periods leading up to the merger.

The new PaddyPower Betfair is now the world’s largest listed online gambling firm with around £1.2 billion ($1.7 billion) in sales and earlier this week released the full-year financial results for PaddyPower along with a third-quarter update on Betfair’s business.

Despite an increase in UK gambling duties, PaddyPower reported a 24 percent boost year-on-year in annual revenues to £852 million ($1.21 billion) while its operating profits rose by ten percent to just over £140 million ($200.82 million).

PaddyPower moreover reported a 23 percent increase year-on-year in mobile revenues with these now accounting for 68 percent of all of its online earnings while the Dublin-based firm additionally stated that its pre-tax profit had improved by eight percent.

For its part, Betfair saw third-quarter revenues rise by 21 percent year-on-year to stand at £138 million ($197.46 million) thanks in large part to a 51 percent boost in sportsbook stakes and improved football results.

The London-based firm also reported that its earnings before interest, tax, depreciation and amortisation (EBITDA) for the three-month period swelled by ten percent year-on-year to £26 million ($37.18 million), which equates to growth of 30 percent before £5 million ($7.15 million) in new taxes.

“These results show that both businesses entered this merger on the back of strong trading momentum,” said Breon Corcoran, Chief Executive Officer for PaddyPower Betfair and former boss at Betfair.

“The integration of the two businesses is progressing well and we look forward to capitalising on the opportunity we have to drive future profitable growth.”

Tags: PaddyPower, Betfair, PaddyPower Betfair, Breon Corcoran, Dublin, London