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BOOKIES PADDY POWER has revealed “very strong” financial results for the first six months of 2012.
The group noted a 21 per cent increase in pre-tax profits which were up to €68.7 million despite what the company called “some adverse sports results” since the May trading update.
Accelerated growth in the online divisions was driven by new customers and new business investment, said the firm. In the six month period, the company’s online business secured 50 per cent more customers. Altogether, there are 1.2 million customers actively using online services – one million of whom use paddypower.com.
Brand and product promotion, as well as the Euro 2012 Money-Back Specials contributed to this increase in online customer acquisition, according to CEO Patrick Kennedy.
Key figures from the online sector include a 41 per cent jump in net revenue to €191 million and an operating profit of €48.5 million (up 7 per cent).
Mobile continues its growth spurt with net revenue up a massive 239 per cent to €53 million. Now, more than half of all sportsbook customers transact via mobile.
In May, the group entered Italy and has achieved a 4 per cent share of the online sports betting market in the first full month of operation.
Retail highlights
There was good news for Irish and UK retail stores with operating profit leaping 79 per cent to €9 million in Ireland because of the “normalisation” of sports results. UK retail’s operating profit was up 61 per cent to €7.6 million as 23 new shops were opened between January and June.
Machine gaming in the UK also saw its revenues increase by 5 per cent.
Kennedy noted that each division across the business achieved double digit revenue growth in the six-month period.
“With our online and retail divisions both continuing to deliver substantial growth and our expansion plans progressing, we are confident in the group’s prospects for the rest of the year and beyond,” he added.
The interim dividend of 39 cent per share marks a 30 per cent increase on the previous period.
Start-up losses for the first half of the year amounted to €6.3 million for four new online ventures but looking ahead, Paddy Power expects three of its new products – casino brand Roller, social game BetDash and Cayetano gaming product – to start contributing revenue in the second half of the year.
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I’m sure lots of people throw a bet for a bit of fun. But, I can’t help but think that lots of people are going without the basics to keep Paddy in €69 million profit.
Great to see the UK and Irish governments indirectly helping out paddy power in the form of dole payments!
its insane that we see more of these shops up and down the country at the one time that people should not be wasting money on such nonsense,
either these types of shops should be more heavily restricted or there has to be a way to restrict how dole money can be spent…because betting is not an acceptable use!
I’ll waste my money on whatever nonsense I want.
Why should the shops be restricted!?! It’s a person’s own decision to go in there & bet their money!! If it turns out that the money being punted originated as a welfare payment then more-fool us, as a state, for giving it to them!!
The Chinese love to gamble even though it is illegal in Mainland China. The Chinese population in Ireland will keep Paddy Power afloat : )
They don’t need the chinese to help em, we’re not shy of a bet or two. But your right the chinese and a few more Asian countries have the gambling gene big style..
getting into bed with the Italian and Spanish governments to rip-off punters in those countries was a solid business move.
banning or severely limiting anyone who turns a profit also helps.
they’re a mickey mouse bookie really. All style, no substance.
No substance ? I bought some of their shares 18 months ago at €27 each, today they’re worth €52 each, I’ve nearly doubled my money on them so for me they have plenty of substance to go with their style. Paddy Power are one of the most profitable Irish companies about and if they manage to crack the US and Canadian markets that share price will go even higher up towards €70.
And you don’t know what you’re talking about Steve.
I don’t dispute their business acumen. They provide a lot of jobs here and I applaud them for it.
But their success is based on clever marketing and the ability to attract the casual punter that doesn’t particularly care about things like low limits and lousy margins, in contrast to somewhere like Pinnacle where competitiveness pricing and limits are everything.
Paddy Power is not a place for serious punters and any book that offers odds on a market and then only allows a customer to place less than a tenner on it is Mickey Mouse in my book.
And I can assure you I know what I’m talking about.
have your say