Paddy Power has revealed that despite having been hit by unfavourable sports results during the period from July 1 through to November 15, this was offset by “strong” underlying growth across the business.
Total net revenue was up 9% year-on-year on a nominal basis and 6% in terms of constant currency, with the latter of these figures increased to a jump of 9% when comparing with the period after the Fifa World Cup national football team tournament ended on July 15, 2014.
Sportsbook net revenue was up 7% and 5% in terms of nominal and constant currency, respectively, while the amounts staked via Paddy Power’s sportsbook increased 21% on a nominal basis and 19% in terms of constant currency.
Total net revenue from the bookmaker’s online business, excluding Australia, came in at a loss of 3% and 9% for nominal and constant currency, respectively, while nominal sportsbook net revenue fell by 12%, with constant currency also down by 17%.
Paddy Power cited the impact of unfavourable sports results as the main reason behind a drop in revenue from its sportsbook business.
Elsewhere, total like-for-like net revenue from the bookmaker’s UK retail arm increased by 9% on a nominal basis, remaining flat when considering constant currency, while revenue from Irish retail was up 4% in terms of both nominal and constant currency results.
Paddy Power also noted that net revenue from its Australian business hiked by 24% in terms of nominal figures, with this result up by 33% year-on-year when considering constant currency.
“Following on from a very strong first half performance, trading in the period has been in line with our expectations,” Paddy Power said in the trading update.
“While sports results in the period were unfavourable across the sector, for Paddy Power this has been offset by strong underlying growth.
“Accordingly, the board continues to expect full year 2015 reported operating profit to be a mid to high single digit percentage increase above 2014.”
Paddy Power also used the trading update to confirm that the relevant filings for its proposed merger with Betfair have been submitted to applicable regulators and the bookmaker expects to publish shareholder documentations within the next few weeks.
source : www.igamingbusiness.com
