Paddy Power net revenue up 38%

Business | Tue 18 Nov | Author – Business & Finance

Paddy Power this morning released results on the trading period from July 1st to November 16th with significant increased in net revenue reported compared with the same period in 2013.

The company said it is benefitting from good top-line growth and favourable sports results, with sportsbook stakes  up 18% online and 3% in retail on a like-for-like basis, and total Group net revenue up 38%. The Board of Paddy Power plc now expects mid to high teens percentage growth in earnings per share for the full year.

Total online net revenue grew by 42%, comprising a 49% increase in sportsbook and 20% growth in eGaming/B2B. Online stakes grew by 18%, 21% in Australia and 16% in Online (ex Australia). Paddy Power also leads the industry on penetration of the key mobile sector, with 58% of the company’s total online revenue from mobile devices in the period.

Online customer acquisition in Australia was up 23%, while active customers increased by 37%, with a strong performance at the recent racing Spring Carnival.

The company’s UK and Irish online business, paddypower.com, grew its sportsbook net revenue by 59%, benefitting from the largest year-on-year gross win percentage rebound amongst Paddy Power’s divisions. Sportsbook stakes also grew by 14%, while in mobile  total active customers increased 33% with customer acquisition up 23%, boosted by the World Cup.

Retail net revenue also grew by 14% on a like-for-like basis with the company opening 73 shops in the year to date, 53 in the UK and 20 in Ireland, bringing the total to 562 units.

As at November 16th, the Group had no debt and cash of €279m, or €206m excluding customer balances.